IBRA to disburse funds for new govt agency<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The management of the now-defunct Indonesian Bank Restructuring
\nAgency (IBRA) will disburse on Thursday funds totaling Rp 150
\nbillion (US$17.6 million) to its successor, the Assets Management
\nCompany (AMC).<\/p>\n
\"The sum can hopefully be used by AMC to start its
\noperations,\" said IBRA chairman Syafruddin A. Temenggung after a
\nmeeting with Minister of Finance Boediono on Tuesday.<\/p>\n
AMC was formed earlier this month following the disbanding of
\nIBRA on Feb. 27. The company, which is under the supervision of
\nthe Ministry of Finance, is charged with managing and
\nrestructuring IBRA's remaining assets, worth about Rp 40
\ntrillion. It will, however, not be burdened by fiscal targets, as
\nIBRA was previously.<\/p>\n
As further explained by Syafruddin, the funds were requested
\nlast week by the Financial Sector Policy Committee (FSPC), which
\ngroups senior economics ministers.<\/p>\n
The Ministry of Finance itself planned to disburse operational
\nfunds of Rp 300 billion for AMC. The disbursement, however, is
\ncurrently pending approval from the House of Representatives.<\/p>\n
\"The funds from IBRA will not need the approval of the House,\"
\nSyafruddin said.<\/p>\n
The money, he continued, would be in the form of a loan to be
\npaid back by AMC.<\/p>\n
\"IBRA will then forward the repayment to the Ministry of
\nFinance as part of IBRA's additional revenue to the state,\"
\nSyafruddin said.<\/p>\n
However, he did not elaborate on the money, but said that IBRA
\nwas still controlling funds of about Rp 3 trillion to 4 trillion,
\nwhich would be delivered to the Ministry of Finance in April.<\/p>\n
The funds, he explained, would be on top of the Rp 5 trillion
\ntargeted for IBRA, generated from sales of assets under its
\ncontrol. The agency delivered the targeted amount to the
\ngovernment to support the state budget for the year prior to its
\ndisbandment.<\/p>\n
IBRA was established in 1998 to bail out banks bankrupted by
\nthe country's 1997 economic crisis. Of the total Rp 650 trillion
\nin assets IBRA obtained from the banks, it managed to recover
\nonly about 28 percent.<\/p>\n
Aside from AMC, the government also plans to establish a new
\ninstitution under the Ministry of Finance, to take over IBRA's
\nrole in the government's bank deposit guarantee program.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-to-disburse-funds-for-new-govt-agency-1447893297",
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"sponsor": "Okusi Associates",
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