IBRA raises $1.16b in cash

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) has raised about Rp 11.25 trillion (US$1.16 billion) in the first half of 2001, compared to its full-year target of Rp 27 trillion.

IBRA chairman I Putu Gede Ary Suta said in a media statement that the cash was raised from the sale of the agency's ownership in 11 companies and recovery of bank non-performing loans (NPLs) which were transferred to IBRA.

Ary Suta said the agency would continue to sell its assets to raise cash to help plug the state budget deficit.

IBRA, a unit under the finance ministry, was formed in 1998. The agency has received some Rp 540 trillion worth of assets from the troubled banking sector and former bank owners. IBRA has a mandate to restructure the assets and sell them to the market to raise cash.

The agency has been criticized, including by the International Monetary Fund, for its sluggishness in its asset disposal program. (rei)