Korea helps IBRA with asset disposal program<\/p>\n
JAKARTA (JP): The Korea Asset Management Corporation (KAMCO)
\nagreed here on Tuesday to help the Indonesian Bank Restructuring
\nAgency (IBRA) sell the assets it has received from the former
\nowners of the country's closed and recapitalized banks.<\/p>\n
KAMCO executive director Cheong Hong Kim said his office would
\nshare with IBRA some of its experience in managing distressed
\nassets so as to help the latter accelerate the debt restructuring
\nprogram.<\/p>\n
"Yes, we'll definitely help IBRA to sell its assets. We'd like
\nto share the expertise and experience we gained from our own
\nasset disposal program," he told journalists after the signing of
\na collaboration agreement between the two agencies.<\/p>\n
KAMCO is an agency established by the South Korean government
\nto buy, restructure and sell non-performing loans (NPLs) from the
\nKorean financial institutions which collapsed during the
\ncountry's economic crisis.<\/p>\n
Cheong said KAMCO had so far restructured 46 percent, or about
\nUS$31 billion, of the total $67 billion of NPLs and sold $5.5
\nbillion worth of assets in both international and domestic
\nmarkets as of June.<\/p>\n
Under the agreement, KAMCO and IBRA will share experience and
\nexpertise in asset disposal management through a human resources
\nexchange program and workshops, said IBRA chairman Cacuk
\nSudarijanto.<\/p>\n
"We'll also cooperate in join marketing to resolve the problem
\nof distressed assets in both countries so that value can be
\nrealized at the optimum price," he said.<\/p>\n
According to Cacuk, KAMCO, the first foreign debt
\nrestructuring agency accepting IBRA's offer of collaboration,
\nwould also provide expertise in repackaging assets in order to
\nboost their market value.<\/p>\n
IBRA has received some Rp 600 trillion in assets transferred
\nfrom the owners of ailing and closed banks as repayment for the
\nmassive emergency funds they received from the government at the
\npeak of the country's economic crisis in early 1998.<\/p>\n
The agency is expected to raise some Rp 6.5 trillion from the
\ndisposal of the assets during the April-December 2000 fiscal
\nyear.<\/p>\n
Some Rp 250 trillion out of the Rp 600 trillion assets managed
\nby IBRA are non-performing loans (NPLs) transferred by the
\ncountry's ailing banking sector. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/korea-helps-ibra-with-asset-disposal-program-1447893297",
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