RI progressing on debt: Deutsche Bank<\/p>\n
FRANKFURT (Agencies): One of Indonesia's leading creditors,
\nDeutsche Bank AG, praised Indonesia for taking major steps to
\nspeed up its debt restructuring.<\/p>\n
Wolfgang Wendt, head of sovereign debt rescheduling at
\nGermany's largest bank, said on Tuesday Indonesia had faced
\n\"immense\" difficulties in overcoming its financial market crisis.<\/p>\n
\"Indonesia has taken important steps to rectify its situation
\nand improvements are already being seen,\" Wendt told a news
\nconference after hosting a presentation given by Indonesian
\nfinance officials to creditor banks in Frankfurt.<\/p>\n
Deutsche co-chairs a 13-member Bank Steering Committee
\nrepresenting Indonesia's creditor banks. The other co-chairs are
\nThe Bank of Tokyo-Mitsubishi and The Chase Manhattan Bank.<\/p>\n
Wendt noted that last month's agreement on a second debt
\nexchange offer extending Indonesian banks' short-term loans gave
\nIndonesia the relief it needed for its balance of payments and
\ngave its banks breathing space.<\/p>\n
The Indonesian delegation, headed by Indonesian central bank
\nmanaging director Dono Iskandar, was in Frankfurt to brief banks
\non details on the exchange offer and outline modifications to the
\nINDRA scheme.<\/p>\n
Iskandar said creditor banks at the meeting had given \"good
\nresponses\" to the presentation.<\/p>\n
The INDRA modifications, which are now in force, have made the
\nscheme more flexible and reduced the cash outlays required of
\ndebtors in the early years.<\/p>\n
INDRA, launched last year, is designed to promote voluntary
\nrestructuring of the Indonesian corporate sector's external debt
\nby providing exchange risk cover for debtors, a guaranteed supply
\nof foreign exchange and local currency financing on affordable
\nterms.<\/p>\n
Last week, INDRA extended its program's entry deadline from
\nJune 30 to Dec.31 due to lack of response.<\/p>\n
But at the Frankfurt meeting, INDRA Chairman Sumitro announced
\nthat PT Persero Danareksa will join the agency program \"within
\nthe next few weeks\" now that the company has agreed with
\ncreditors on restructuring debt.<\/p>\n
Indonesian officials said Danareksa's entry is virtually a
\ndone deal, and they hope it will set an example for other to join
\nsoon.<\/p>\n
\"We hope that more and more companies will use the (Danareksa)
\nrestructuring as a model...and sign on to Indra as well,\" Bank
\nIndonesia managing director Dono Iskandar said at a press
\nbriefing.<\/p>\n
Danareksa has reached final agreement with creditors to
\nrestructure $366 million in foreign debt.<\/p>\n
Last month Indonesia and its creditor banks agreed on a second
\ninter-bank debt rescheduling covering about $3.8 billion in debts
\ndue between April 1, 1999 and December 31, 2001, which are to be
\nrescheduled for a maturity of four years, from January 1, 2002
\nuntil the end of 2005.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-progressing-on-debt-deutsche-bank-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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