Export financing bank to start soon

Export financing bank to start soon

JAKARTA (JP): The newly established export financing Bank
Ekspor Indonesia (BEI) will start operations early next month,
the bank's executive has said.

BEI's president, Budi Mulya, said on Friday the government had
injected Rp 3 trillion as an initial paid-up capital to support
its operations.

"BEI is ready to operate sometime before August 5 to give bank
guarantees, Letters of Credit and working capital facilities to
exporters," he said, reported Bisnis Indonesia daily.

Budi said that BEI's paid-up capital fund was allocated from
the state budget and deposited in BEI's account at Bank Indonesia
(BI).

BEI was established in May to support export-oriented
companies. Unlike a conventional bank, BEI will not raise funds
from the public to finance its activities but from international
financing agencies such Japan's Export Import Bank.

He said the establishment of the special financing agency was
timely because it would begin its operation when industrial
activities have indicated signs of recovery after almost two
years in a distressed situation.

"Now, all related permits to put BEI in operation are in the
process of getting approval from the Ministry of Justice and BI,"
Budi said, adding he was confident that by mid July all the
approvals would be attained.

The establishment of the export financing agency was postponed
several times due to a lack of funds to support its working
capital and government indecisiveness whether to use an existing
bank or to form a new financial institution in helping export-
oriented companies.(udi)