Foreigners tender $3.2b in RI debt<\/p>\n
LONDON (Reuters): Bank Indonesia and Deutsche Bank AG said on
\nThursday more than US$3.2 billion of external debt of Indonesian
\nbanks was tendered by creditors in an exchange to help the
\ncountry restructure its banking system.<\/p>\n
\"The amount of tendered debt exceeded substantially the
\nthreshold amount of $2.4 billion provided under the terms of the
\nexchange offer,\" the banks said in a joint statement issued in
\nLondon.<\/p>\n
Indonesia and a 13-member international Bank Steering
\nCommittee reached an agreement under which foreign debt of
\nIndonesian banks falling due by Dec. 31, 2001 will be exchanged
\nfor loans with longer maturities and different interest rates.<\/p>\n
Deutsche said that as a result of requests from some
\ncreditors, the exchange had been extended to May 17 at 1700
\nFrankfurt time.<\/p>\n
\"The successful completion of the exchange offer is expected
\nto contribute significantly to the restructuring and
\nrecapitalization of the Indonesian banking sector and to further
\nexpedite Indonesia's economic recovery,\" Deutsche and Bank
\nIndonesia said.<\/p>\n
Under the exchange, Indonesian bank credits due by 2001 will
\nbe exchanged for new loans guaranteed by Bank Indonesia to mature
\nin 2002, 2003, 2004, and 2005.<\/p>\n
The international banking consortium was headed by Deutsche,
\nThe Bank of Tokyo-Mitsubishi and Chase Manhattan Bank.<\/p>",
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