Mon, 08 Feb 2010

Jakarta (ANTARA News) - The government expects the country`s credit growth to reach 20 percent this year to boost investment and exports, a minister said.

Speaking to the press here on Friday, Coordinating Minister for Economic Affairs Hatta Rajasa expected all banking credits this year could be disbursed to support economic growth.

The government also expected the difference between lending rates and deposit rates would decline to make the lending rates more competitive even if Bank Indonesia (the central bank/BI) maintained its benchmark interest (BI Rate) at 6.5 percent.

Hatta also expected public savings in domestic banks which reached an estimated Rp2,000 trillion could be used for productive activities.

"The funds are quite huge. We hope it can be used to finance infrastructure projects in the long run," he said.