BEI to provide less export loans
BEI to provide less export loans
Arya Abhiseka, The Jakarta Post, Jakarta
Bank Ekspor Indonesia (BEI), a state export financing bank, plans
to disburse export loans worth Rp 13.2 trillion (US$1.48 billion)
this year, according to an official.
BEI president Bambang Hendrajatin said the new loans would
include up to Rp 4.2 trillion for refinancing, Rp 800 billion for
co-financing, Rp 180 billion for post-shipment financing, and Rp
285 billion in the form of bank guarantees.
Speaking at a press conference announcing the bank's 2002
financial performance, Bambang said that the size of the 2003
export loans would be lower than last year's Rp 19.3 trillion.
He did not give any reason for the reduction. But analysts say
that the country's export performance would remain weak this year
due to a host of problems both at home and overseas, including
the poor business climate here and the economic slowdown in major
trading partner countries like the U.S. and Japan.
Bambang said that the bank was forecasting a net profit of Rp
293 billion, lower than last year's Rp 341 billion.
"Last year's numbers were outstanding and will be difficult to
surpass," he said.
Last year, BEI channeled 17 percent of its export loans to the
textile sector, 16 percent to the timber and plywood sector, 15
percent to the agriculture sector, with the remainder being
distributed among other sectors.
In addition to providing loans for exporters, BEI also offers
consultancy services, which include giving exporters trade
finance training, and advice and information regarding import-
export issues.
Elsewhere, Bambang said BEI was planning to raise around Rp
300 billion by tapping the local debt market again this year.
The bank, which issued Rp 375 billion of medium-term notes
(MTNs) in 2002, was considering whether or not to issue either
MTNs or bonds in the first half of the year, he said.
"If the bond market is flooded by new bonds we may opt to
issue MTNs," he added.
He said the bank had not yet appointed a financial advisor for
such purposes.
BEI is one of a handful of local companies planning to raise
funds from the local debt market this year amid declining
interest rates, although most banks are still undercapitalized
for providing new loans.