IBRA secures restructuring deals<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nsaid on Monday it had reached preliminary agreements with at
\nleast 242 debtors for debt restructuring schemes worth Rp 23.1
\ntrillion (about US$2.43 billion).<\/p>\n
IBRA said the restructuring deals covered debtors with debts
\nof below Rp 1 trillion.<\/p>\n
\"At least 242 debtors have agreed to sign a memorandum of
\nunderstanding for the restructuring of debts worth Rp 23.1
\ntrillion,\" IBRA said in a statement.<\/p>\n
If finalized, IBRA will have restructured in total Rp 33.18
\ntrillion in debts owned by debtors with debts under Rp 1
\ntrillion.<\/p>\n
Among the 242 companies joining the latest restructuring deals
\nare PT Bakrie Brothers which owes IBRA Rp 565 billion, PT Barito
\nPacific Timber which owes Rp 98.92 billion, PT Sinar Mas
\nMultifinance with Rp 228.60 billion and PT Texmaco Jaya with Rp
\n438.58 billion debt.<\/p>\n
IBRA said that part of the restructuring had been conducted by
\nits outsourcing agents.<\/p>\n
The agency was founded by the government in 1998 to
\nrestructure bad debts it took over from local banks hit by the
\n1997 financial crisis.<\/p>\n
Banks handed over their nonperforming loans to IBRA in
\nexchange for recapitalization bonds, on which most banks now rely
\nfor their revenues.<\/p>\n
Once IBRA has restructured the loans, the agency can either
\nsell or swap them with recapitalization bonds in banks to help
\nease the burden of the state budget.<\/p>\n
State Minister for National Development Planning Kwik Kian Gie
\nsaid he would establish a division at the National Development
\nPlanning Agency (Bappenas) to analyze the financial health of
\nindebted companies under IBRA.<\/p>\n
\"The government must have super micro economics capability,\"
\nhe told a hearing with the House of Representatives' state budget
\ncommission.<\/p>\n
Equipped with its own analyses on debtors, he explained, the
\ngovernment could better control IBRA's debt restructuring
\ndeals.(bkm)<\/p>",
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