BI seeks two-step loans

BI seeks two-step loans

JAKARTA (JP): Bank Indonesia, the central bank, is seeking a two-step loan of US$30 million from Japan's Export Import Bank to support small-scale companies, says an official.

Abdul Salam, Bank Indonesia's director for small-scale loans, said Wednesday that the two-step loan facility is being negotiated.

"We hope to get the loan facility by the end of this year," he said, adding that the loan would be the sixth two-step loan to be provided by Japan's Export Import Bank.

The central bank usually uses two-step loans to back up government projects. The facility is normally extended to borrowers through state and private commercial banks.

Salam said that as of February, two-step loans channeled to commercial banks reached a total of around $1.1 billion. (hen)