Land agency to help banks recover bad loans<\/p>\n
JAKARTA (JP): State Minister for Agrarian Affairs Soni Harsono
\npledged here yesterday that he would help commercial banks
\nrecover non-performing loans in which land was used as
\ncollateral.<\/p>\n
\"So far there are a lot of cases of bad loans in which debtors
\nare using their land as collateral. However, the land has legal
\nflaws in their certificates,\" Soni, who is also chairman of the
\nNational Land Agency (BPN), told reporters here yesterday.<\/p>\n
His announcement came after he attended a meeting of economic
\nministers.<\/p>\n
President Soeharto said last Thursday that the Ministry of
\nJustice, the Office of the Attorney General, the National Land
\nAgency, the State Receivership Agency and monetary authorities
\nshould cooperate to seek fair and swift ways to legally settle
\nnon-performing loan cases faced by the banking industry.<\/p>\n
According to Bank Indonesia (the central bank), bad debts from
\nboth state and private banks had reached some 3.5 percent of the
\noutstanding loans as of last November, amounting to some Rp 145.9
\ntrillion (US$57.7 billion.)<\/p>\n
Soni said yesterday that BPN and the central bank had already
\nmet several times to discuss ways to solve the problems related
\nto bad loans.<\/p>\n
Ready<\/p>\n
\"We are now ready to help commercial banking,\" he said. He
\nadded that his agency is now taking measures to help the
\nliquidation team of the now defunct Bank Summa recover the bank's
\nbad loans.<\/p>\n
He said that many plots of land which were put up for mortgage
\nat Bank Summa were also put up at other banks as collateral.<\/p>\n
Soni's statement is expected to relieve executives of private
\nbanks, which are encountering an increasing level of non-
\nperforming loans.<\/p>\n
Perbanas has been committed to helping its members cope with
\nnon-performing loans through its newly established consultative
\nteam. The association's vice chairman, Thomas Sujatno, criticized
\nthe government, which so far has helped only state-owned banks in
\nrecovering bad loans.<\/p>\n
\"The government is very successful in executing bad loans at
\nstate-owned banks,\" he said. However, he added that private banks
\nshould actually be receiving similar attention.<\/p>\n
Perbanas' chairman said over the weekend that the
\nassociation's new team, comprising lawyers and experts in banking
\nand economics, will cooperate with all related government
\nagencies to help settle problem loans faced by private commercial
\nbanks.<\/p>\n
These agencies will include the Ministry of Justice, the
\nOffice of the Attorney General, the State Receivership Agency,
\nBank Indonesia and BPN.(icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/land-agency-to-help-banks-recover-bad-loans-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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