IBRA can't fulfill govt request for higher proceeds<\/p>\n
The Jakarta Post, Sukabumi, West Java<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) said it would
\nnot be able to collect a more money to help finance the 2003
\nstate budget deficit, which will be wider than initially
\nprojected.<\/p>\n
IBRA director of finance Harry A.S. Sukadis said on Friday
\nthat the agency could only contribute around Rp 18 trillion
\n(US$2.17 billion) in cash to the state this year.<\/p>\n
The government had asked IBRA to collect more money to help
\nfinance the budget deficit, which is estimated to widen to 2
\npercent of gross domestic product (GDP) from the initial
\nprojection of 1.8 percent of GDP.<\/p>\n
Minister of Finance Boediono expected the agency to contribute
\nup to Rp 21 trillion to the state this year by converting bonds
\nthe agency redeemed from banks into cash.<\/p>\n
In addition to the Rp 18 trillion cash target, IBRA is also
\ntargeted to recover around Rp 8 trillion worth of bonds from
\nrecapitalized banks. The government injected massive amounts of
\nbonds into troubled banks to help recapitalize them.<\/p>\n
\"But raising an additional Rp 3.3 trillion by converting bonds
\nto cash is too difficult for us. And we think the government
\nwould understand,\" Harry told reporters during a workshop
\norganized by the agency.<\/p>\n
IBRA, which was set up in 1998, took over various assets from
\ntroubled banks and their owners. The agency is mandated to sell
\nthe assets to raise cash to contribute to financing the budget
\ndeficit.<\/p>\n
Harry said that according to the initial plan, IBRA was
\nsupposed to have already submitted the Rp 18 trillion cash by
\nSeptember, but due to delays in a number of asset sale programs,
\nthe agency could only fulfill the cash target next month.<\/p>\n
As of August, the agency could only raise around Rp 10
\ntrillion in proceeds.<\/p>\n
\"We will try hard to get the remaining Rp 8 trillion by
\nOctober,\" Harry said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-cant-fulfill-govt-request-for-higher-proceeds-1447893297",
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