Danamon, SPU sign new deal

Danamon, SPU sign new deal

JAKARTA (JP): The publicly listed PT Bank Danamon signed on
Friday a cooperation agreement with the state-owned credit
guarantor Perum Sarana Pengembangan Usaha (SPU) to help the
former in lending to cooperatives, and small and medium-scale
enterprises (SMEs).

Danamon president Arwin Rasyid said that the cooperation
agreement would help overcome the problem of the lack of
collateral faced by SMEs and cooperatives in obtaining credit
from banks.

Late last year, Danamon also signed a cooperation agreement
with government-sponsored PT Permodalan Nasional Madani in a bid
to provide more credit to the SMEs.

Arwin said that the bank planned to sign similar cooperation
agreements with other institutions in the future.

He said that out of the bank's projected Rp 5 trillion to 7
trillion (US$736 million) in new lending this year, 20-25 percent
would be allocated to SMEs and cooperatives.(rei)