Foreigners tender $3.2b in RI debt

Foreigners tender $3.2b in RI debt

LONDON (Reuters): Bank Indonesia and Deutsche Bank AG said on Thursday more than US$3.2 billion of external debt of Indonesian banks was tendered by creditors in an exchange to help the country restructure its banking system.

"The amount of tendered debt exceeded substantially the threshold amount of $2.4 billion provided under the terms of the exchange offer," the banks said in a joint statement issued in London.

Indonesia and a 13-member international Bank Steering Committee reached an agreement under which foreign debt of Indonesian banks falling due by Dec. 31, 2001 will be exchanged for loans with longer maturities and different interest rates.

Deutsche said that as a result of requests from some creditors, the exchange had been extended to May 17 at 1700 Frankfurt time.

"The successful completion of the exchange offer is expected to contribute significantly to the restructuring and recapitalization of the Indonesian banking sector and to further expedite Indonesia's economic recovery," Deutsche and Bank Indonesia said.

Under the exchange, Indonesian bank credits due by 2001 will be exchanged for new loans guaranteed by Bank Indonesia to mature in 2002, 2003, 2004, and 2005.

The international banking consortium was headed by Deutsche, The Bank of Tokyo-Mitsubishi and Chase Manhattan Bank.