The buying of IBRA's credit<\/p>\n
The banking crisis in 1997 was followed by the transfer of
\nnon-performing loans worth hundreds of trillions of rupiahs to
\nthe Indonesian Bank Restructuring Agency (IBRA), in the hope that
\nthe bad credits would be restructured first by the agency before
\nthey are returned to concerned banks.<\/p>\n
IBRA has since last year sold its already-restructured credit
\nassets through some programs of the Corporate Core Asset Sales.
\nSome of the credit assets had been bought by banks.<\/p>\n
The number of credit assets restructured by IBRA however, is
\nvery small compared to the volume of credit assets the agency has
\nbeen managing.<\/p>\n
No wonder IBRA has since mid-2002 sold some credit assets
\nwhich have yet to be restructured. The biggest non-performing
\ncredit asset sold through the Credit Asset Selling Program (PPAK)
\nwas worth Rp 135 trillion.<\/p>\n
It can be said that most of IBRA's credit assets, including
\nthe unrestructured ones, have been returned to the banks as 70
\npercent of PPAK buyers were local investors and banks.<\/p>\n
To refrain from running into (the central bank) Bank
\nIndonesia's policy on non-performing credit assets, some banks
\nalong with security companies and investment managements have
\nformed consortium.<\/p>\n
Hence, it is better for the central bank, IBRA and the banks
\nto have a dialog on their interests in the business. The banks
\nshould be allowed to buy IBRA's credit assets without ignoring
\nthe principle of prudent banking. -- Bisnis Indonesia, Jakarta<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/the-buying-of-ibras-credit-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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