Wise approach needed in handling bad debts<\/p>\n
JAKARTA (JP): The government should take a wise approach in
\nhandling the mounting bad debts of private companies owing funds
\nto state-owned banks, says a noted business analyst.<\/p>\n
Christianto Wibisono, the director of the Indonesian Business
\nData Center, said yesterday that debt scheduling might be a
\nbetter solution for bad debts which have emerged due to marketing
\nproblems.<\/p>\n
On the other hand, severe punishment should be imposed on
\nborrowers which have been involved in bad debts caused by
\nmismanagement, he said.<\/p>\n
\"The mismanagement could be engineered and it is a crime, and
\ncould involve bank executives,\" he said.<\/p>\n
Christianto said the debt scandal in the state-owned Bank
\nBapindo, involving Eddy Tansil and four top executives of the
\nbank, is an example of how a borrower and bank executives
\ncolluded to manipulate state funds.<\/p>\n
Eddy, charged with manipulating Bapindo's loans of around
\nUS$620 million, is now being tried in court. The four bank
\nexecutives are also being tried for their alleged involvement in
\nthe debt scandal.<\/p>\n
Eddy is one of the 50 businessmen reported to have incurred
\nbad debts of above Rp 100 billion ($47.5 million) in the
\ncountry's six state-owned banks -- Bapindo, Bank Negara
\nIndonesia, Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor
\nIndonesia and Bank Rakyat Indonesia.<\/p>\n
Assessment<\/p>\n
Christianto suggested that assessing the external and internal
\nfactors of borrowing companies is essential so that the handling
\nof bad debt problems could be carried out effectively.<\/p>\n
\"If the solution is wrongly handled, the managing of bad debts
\ncould strongly affect the country's economy,\" he said, adding
\nthat debt relief in the form of debt rescheduling could be
\nextended to borrowers, who could not pay their debts due to
\nmarketing failure, while those who abuse loan facilities should
\nbe taken to court.<\/p>\n
\"The rescheduling of Gemala Group's debt of $30 million to
\nBank Bumi Daya, for example, is beneficial for both the borrower
\nand the lender,\" he said.<\/p>\n
Bank Bumi Daya was reported to have rescheduled the Gemala
\nGroup's debts of around $30 million, extended by the bank to
\nfinance the group's purchase of a battery plant in Britain.<\/p>\n
Christianto said that Gemala Group is one of a number of
\nIndonesian companies which failed to manage their overseas
\noperations effectively due to their lack of experience.<\/p>\n
\"Mantrust, Bentoel, Summa and even Salim Group also had a
\nbitter experience in their overseas operations,\" he said. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wise-approach-needed-in-handling-bad-debts-1447893297",
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