Govt claims in E. Java

Govt claims in E. Java

JAKARTA (JP): The Financial, Bank and Trade Commission of the House of Representatives expressed concern yesterday over the large amount of uncollected government credits in East Java. The cases were submitted to the State Receivership Agency.

The commission's spokesman, Djimanto, said that the East Java office of the State Receivership Agency had received 3,731 cases of uncollected government loans worth Rp 642.5 billion (US$285.5 million) between 1993 and 1995.

"However, as of August only 2,949 cases involving Rp 207.93 billion have been settled, thereby leaving 782 cases worth Rp 434.57 billion unresolved," Djimanto said.

He said 94 percent of the uncollected government claims consist of loans extended by state banks.

The commission found that lack of information, inadequate documentation of collaterals and litigations by debtors had hindered the settlement of the government claims. (04)