BCA extends credit to farmers

JAKARTA (JP): State-owned Bank Central Asia (BCA) will extend Rp 2 billion (U$210,500) in subsidized credits to farmers in West Java.

The bank said on Friday that the credits are part of the Rp 100 billion in farming loans to be provided by the bank this year and that the credit would be disbursed in cooperation with state- owned PT Dharma Niaga.

BCA signed an agreement with the government in October, 2000 to provide Rp 100 billion of the food endurance credit scheme, or KKP.

BCA, under the agreement, will use its own funds to provide the loans, which carry and interest rate of 12 percent per annum. The government will act as a guarantor and subsidize the interest payments.

BCA has agreed to provide Rp 30 billion in KKP loans to Central Java, Rp 20 billion to Yogyakarta, Rp 15 billion to East Java, Rp 15 billion to Bali, Rp 10 billion to Lampung, Rp 5 billion to West Java and Rp 5 billion to South Sumatra.

Next month, BCA also plans to sign an agreement through which they will lend some Rp 2 billion in similar credits to farmers in Malang and East Java, the bank said.(05)