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.