JITF meets US$14b target<\/p>\n
Berni K. Moestafa, The Jakarta Post, Jakarta<\/p>\n
The Jakarta Initiative Task Force (JITF) has finalized the
\nmediation of debt restructuring talks worth US$14.2 billion from
\nthe $14 billion targeted this year, but warned of tougher talks
\nahead as a prolonged economic slump undermines companies'
\ncashflow.<\/p>\n
JITF chairman Bacilius Ruru said on Thursday the agency's
\ntarget of restructuring $14 billion by Dec. 31 was set in the
\nLetter of Intent (LoI) to the International Monetary Fund (IMF).<\/p>\n
\"This represents the third consecutive time the JITF has
\nsatisfied the targets set out in the LoI,\" Ruru said in a
\nstatement.<\/p>\n
JITF's debt restructuring target is one of the performance
\nindicators the IMF uses to gauge Indonesia's reform progress.<\/p>\n
The LoI contains a set of economic reform targets, which the
\ngovernment must meet to obtain the Fund's loans.<\/p>\n
The JITF mediates debt restructuring talks between indebted
\ncompanies and their creditors.<\/p>\n
It was set up in 1998 by the government to help accelerate the
\ndebt restructuring process of the country's private sector.<\/p>\n
Restructuring private debts enables the ailing banking sector
\nto earn interest rates on their loans, and revitalize indebted
\ncompanies.<\/p>\n
JITF chief operating officer, Samuel Tobing said that over the
\npast six months, the task force had finalized major debt deals
\nwith many companies<\/p>\n
\"Large conglomerates PT Bakrie & Brothers, and PT Semen
\nCibinong closed a transaction for which a memorandum of
\nunderstanding had previously been negotiated,\" JITF said.<\/p>\n
The two publicly listed firms owe debts to various creditors
\nin excess of US$1 billion.<\/p>\n
At present, the task force handles the mediation of $22.2
\nbillion in debts, according to JITF's statement.<\/p>\n
But as the global economic downturn lingers into 2002, JITF
\nwarned of tougher debt negotiations ahead.<\/p>\n
\"Although there have been some bright spots, we have also seen
\nrenewed pressure on corporate cash flows brought about by a
\ndeteriorating global economic picture and difficulties in
\nobtaining working capital,\" Samuel said.<\/p>\n
He added that many debt deals were being renegotiated.<\/p>\n
Some debt deals are based on earnings forecasts which face a
\ndownward revision, as debtors must take into account the gloomy
\noutlook on the global economy.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jitf-meets-us14b-target-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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