INDRA caps September debt rate at Rp 12,314<\/p>\n
JAKARTA (JP): The Indonesian Debt Restructuring Agency (INDRA)
\nset on Monday the rupiah exchange rate for the conversion of
\noverseas debts of local corporate debtors participating in the
\nagency's debt restructuring program this month at Rp 12,314 per
\nU.S. dollar.<\/p>\n
INDRA chairman Sumitro said in a statement that the new
\nexchange rate was based on the moving average market rate during
\nthe 20 working days in August.<\/p>\n
The agency set the cap exchange rate at Rp 13,233 to the
\ndollar on August 3, when the debt program first started.<\/p>\n
INDRA will announce its best exchange rate every month until
\nJune 1999, when the program is to be closed for participation,
\nSumitro said.<\/p>\n
INDRA is a government-sponsored agency with a mission to help
\nrestructure the country's more than US$64 billion of private-
\nsector overseas debts, of which more than $34 billion is due this
\nyear.<\/p>\n
Under the program, which is a result of the Frankfurt
\nagreement with a creditors' committee in June, debtors joining
\nthe scheme would have to have first sought approval from their
\nlenders to reschedule the debts in eight years, including a
\nthree-year grace period.<\/p>\n
Debtors would then make monthly installments in rupiah (based
\non INDRA's locked-in conversion rate), and INDRA will pay the
\nlenders in dollars, but only the interest during the three-year
\ngrace period.<\/p>\n
The conversion rate is expected to improve over time but is
\nguaranteed not to get worse.<\/p>\n
Debtors entering the debt restructuring scheme at a higher
\nexchange rate will receive a refund of the difference in June
\n1999 when INDRA resets the exchange rate.<\/p>\n
The debt restructuring program is expected to help reduce
\ndemand for dollars which in turn will help strengthen the ailing
\nrupiah.<\/p>\n
INDRA did not announce whether there had been any
\nparticipation in the debt program as of Monday.<\/p>\n
The rupiah closed at more than Rp 11,000 to the dollar Monday,
\ncompared to Rp 2,450 in July last year before the crisis
\nstarted. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indra-caps-september-debt-rate-at-rp-12314-1447893297",
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