Bakrie one of 20 firms to get preshipment loans

Bakrie one of 20 firms to get preshipment loans

JAKARTA (JP): The Bakrie Group revealed on Wednesday it was
one of 20 companies which received preshipment loans from Bank
Indonesia.

The business group said in a statement it received the loans
through state banks Bank Negara Indonesia (BNI) and Bank Ekspor
Impor Indonesia (Bank Exim).

In early February last year, the central bank provided US$38
million in preshipment financing through BNI and Rp 381 billion
through Bank Exim, Bakrie said.

Bank Indonesia Governor Sjahril Sabirin submitted the names of
20 companies which received preshipment credits to the House of
Representatives late on Tuesday. But the names were not disclosed
to the press.

The central bank governor said Bank Indonesia provided a total
of $554 million and Rp 1.8 trillion in preshipment facilities to
the 20 companies.

He said 18 of the 20 companies had repaid their debts.

Bakrie acknowledged the preshipment facilities it received
through the two state banks turned sour as the economic crisis
deepened.

As a consequence, the preshipment loans, along with the
business group's other debts, were transferred to the Indonesian
Bank Restructuring Agency, Bakrie said.

The group stated that the $38 million in preshipment
facilities channeled through BNI was meant to support its export
activities.

"However, Bank BNI used the funds to refinance another loan
Bakrie received from the bank in November 1997 worth Rp 200
billion," the widely diversified business group said in its
statement. (hen)