IBRA needs bank help to restructure loans<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nwill soon appoint two banks to help the agency restructure some
\nRp 8.4 trillion (US$976.44 million) of bank bad debts under its
\nmanagement, a senior official at the agency says.<\/p>\n
Anton Napitupulu said on Tuesday that this would be the third
\nand final tranche of the agency's program to outsource the
\nrestructuring of some Rp 20 trillion in nonperforming loans.<\/p>\n
IBRA recently announced it had shortlisted 11 financial
\ninstitutions to bid for the third tranche of the outsourcing
\nprogram.<\/p>\n
The 11 candidates include Bank Central Asia, Bank Lippo, Bank
\nNiaga and Bank Universal, Bank Panin and ANZ, Sakura Merchant
\nBank, Bank Artha Graha and Grant Thornton, Bank Internasional
\nIndonesia, Bank Buana Indonesia and Sidharta Consulting, Bank
\nBukopin, DBS Buana, and Deutsche Bank and Bank Rakyat Indonesia.<\/p>\n
Bank Danamon earlier won the first tranche with a mandate to
\nrestructure some Rp 6.6 trillion of bad debts, and Bank Negara
\nIndonesia (BNI) recently won the second tranche to restructure
\nsome Rp 5.42 trillion in bad loans.<\/p>\n
IBRA manages around Rp 220 trillion worth of bad loans
\ntransferred from closed-down banks, nationalized banks and
\nrecapitalized banks.<\/p>\n
The agency has a mandate to restructure and collect the loans
\nas part of the country's overall bank and corporate restructuring
\nprograms, and to raise cash to help finance the state budget.<\/p>\n
IBRA has said it would outsource the restructuring of some Rp
\n20 trillion of the loans to third parties to accelerate the
\nrestructuring process.<\/p>\n
IBRA signed an agreement on Tuesday with Bank BNI and Delloite
\nTouche Tohmatsu, a consortium that won the second tranche of the
\noutsourcing program.<\/p>\n
Anton said that according to the contract, BNI was given two
\nyears to restructure the loans.<\/p>\n
He said that BNI received a fixed management fee and a success
\nfee for its work.<\/p>\n
Eko Budiwiyono of BNI expressed confidence that the bank would
\nbe able to meet the target.<\/p>\n
But analysts have warned that the current increasing domestic
\ninterest rates would become an obstacle to the debt restructuring
\nefforts.<\/p>\n
Since last month, domestic interest rates have started to rise
\nagain amid continuing weakness in the exchange rate of the rupiah
\nagainst the U.S. dollar.(rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-needs-bank-help-to-restructure-loans-1447893297",
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