March deadline set for IBRA debtors<\/p>\n
Berni K. Moestafa, The Jakarta Post, Jakarta<\/p>\n
Former bank owners have until March 31, to agree to pay off their
\ndebts to the Indonesian Bank Restructuring Agency (IBRA) under
\nthe revised shareholders settlement program, otherwise the
\ngovernment would take stern measures against them, a government
\nofficial said.<\/p>\n
Secretary to the Financial Sector Policy Committee (FSPC),
\nSyafruddin Temengung said on Wednesday that debtors who missed
\nthe March deadline would be categorized as "noncooperative".<\/p>\n
"After March 31, IBRA will report to the FSPC and sort out
\nthose who are cooperative and those who are not. Afterwards we
\nwill discuss the steps to be taken in consultation with
\ninstitutions like the Attorney General's Office," he told
\nreporters.<\/p>\n
The FSPC groups together senior economic ministers, and is in
\ncharge of IBRA's high profile debt restructuring deals worth over
\nRp 1 trillion (about US$96 million)<\/p>\n
Syafruddin refused to say the government would immediately
\ntake legal action against noncooperative debtors, but did not
\nrule out the possibility either.<\/p>\n
On Monday, Coordinating Minister for the Economy, Dorodjatun
\nKuntjoro-Jakti said the government was mulling over legal steps
\nto force noncooperative debtors into paying.<\/p>\n
Tougher legal measures were being prepared after the FSPC
\nextended the debt payment period under the shareholder settlement
\nprogram to 10 years from four.<\/p>\n
The program applies to former bank owners whose banks IBRA
\ntook over after the government bailed them out after the 1997
\nfinancial crisis.<\/p>\n
To repay the bailout costs, the shareholder settlement program
\nrequired the bankers to surrender their assets.<\/p>\n
The program also exempted the former bankers from prosecution,
\nas it turned out that most of the bailout funds were misused.<\/p>\n
To date however, most had not begun their debt repayment,
\nwhile others simply have refused to surrender their assets by
\nbogging down negotiations with disputes over the value of the
\nassets.<\/p>\n
IBRA said most debtors deferred payment because four years was
\ntoo short a period to cover their debts. The agency argued that a
\n10-year extension was needed to bring in the debt payments.<\/p>\n
But that decision drew criticism from bank analysts who
\naccused the government of going soft on noncooperative debtors.<\/p>\n
"This is a matter of financial restructuring, by stretching
\n(the payment period) we give them more breathing room,"
\nSyafruddin continued.<\/p>\n
He reiterated that past deals failed to promote repayment in
\npart because of disputes arising about the value of the assets.<\/p>\n
Also, the National Development Program (Propenas), allowed for
\na revision of the shareholder settlement program, he said.<\/p>\n
"After we have gone through that process, we can get tough
\nwith them," he explained.<\/p>\n
Minister Dorodjatun said that new legal measures against the
\nnoncooperative debtors would be discussed next week at the
\nCabinet meeting.<\/p>\n
The new measures are also part of reform targets under the
\nfourth Letter of Intent (LoI) to the International Monetary Fund.<\/p>\n
"IBRA intends to take more decisive action against
\nnoncooperative debtors....A specific plan to address issues
\nassociated with noncooperating debtors will be finalized by the
\nend of March 2002," the LoI said.<\/p>\n
It says over Rp 50 trillion in loans are in litigation. Of
\nthat amount Rp 13 trillion belong to 49 noncooperating debtors.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/march-deadline-set-for-ibra-debtors-1447893297",
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