Exporters to get cheaper loans<\/p>\n
JAKARTA (JP): The government will soon enter into a deal with
\neight healthy domestic banks designed to provide exporters and
\ndistribution companies with Rp 2.5 trillion (US$192.31 million)
\nin cheaper loans, Finance Minister Bambang Subianto said
\nyesterday.<\/p>\n
\"The agreement will be signed in the next couple of days,\" he
\nsaid after presenting the revised state budget for 1998\/1999 to
\nthe House of Representatives (DPR).<\/p>\n
The eight banks involved in the scheme are Bank Negara
\nIndonesia, Bank Rakyat Indonesia, Bank Bali, Bank Lippo, Bank Pan
\nIndonesia, Bank Buana Indonesia, Bank Internasional Indonesia and
\nBank Niaga, sources said.<\/p>\n
The loans would be issued at interest rates below current
\nmarket levels, bankers said.<\/p>\n
They added that the government would compensate the
\nparticipating banks by allowing them to swap non-performing loans
\nfor government bonds, yet to be issued, up to the value of the
\ncheap loans which they issued under the scheme.<\/p>\n
Indonesian exporters have failed to benefit from the sharp
\ndepreciation of the rupiah against the U.S. dollar because they
\nhave to provide local banks with up-front payment in full in
\norder to obtain a letter of credit to import raw materials.<\/p>\n
The distribution sector is also facing difficulties as a
\nresult of serious damage inflicted during the May riots. (rei)<\/p>",
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"sponsor": "Okusi Associates",
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