$10m facility for Mandiri

$10m facility for Mandiri

JAKARTA (JP): The Dai-ichi Kangyo Bank Ltd. Singapore has
agreed to provide state Bank Mandiri with a US$10 million
revolving credit facility under the Japanese Minister of
International Trade and Industry (MITI) trade insurance.

The scheme, according to Bank Mandiri, insures Bank Mandiri
letters of credit (L/C) payable at the Dai-ichi Kangyo to
Japanese exporters.

Letters of credit are used by Indonesian companies to pay for
consumer and capital goods ordered from Japanese companies.

Under the scheme, Indonesian companies can delay payment for
consumer goods for up to 180 days, and for capital goods for up
to 360 days.

Cost of production can also be reduced under Bank Mandiri's
interest rates if an L/C is issued in Japanese yen, it said.

"Using the facility will aid importers as L/Cs payable in
Japan will no longer need to be confirmed by a first-class bank,"
the bank said in a statement. (10)