Bank does nothing about Organda's debt

Bank does nothing about Organda's debt

JAKARTA (JP): City-owned Bank DKI insisted on Monday that the
bank could not compel bus companies, members of the city's
Organization of Land Transportation Owners (Organda) to pay their
debt amounting to Rp 56.3 billion (US$5.1 million).

The bank's credit unit head Thalim Mulyadi said that his bank
had been assigned only to distribute the loan from Bank Indonesia
to the bus companies.

"We cannot take any legal action, such as seizing the
companies' buses. It depends on the central bank as the money
lender," Thalim told reporters.

He stated that the bus companies had reported to Bank DKI that
they were not able to pay the loan and would not object if the
bank wanted to seize the buses bought from the central bank
credit.

Organda's chairman Aip Syaifuddin said his organization's
members were not able to repay the loan and had asked for a
rescheduling.

"But if the bank wants to seize the old and damaged buses,
it's okay," Aip said.

According to Aip, bus companies received the loan under the
Central Bank's Liquidity Fund (BLBI) for maintenance and
purchasing of bus spare parts, following the economic crisis
which began to hit the country in mid-1997.

He said the companies had so far been paying the loan
interest.

"We hope that we are allowed to reschedule the loan repayment
to five years," Aip remarked.(jun)