IBRA raises Rp 16.5t in first half

IBRA raises Rp 16.5t in first half

The Indonesian Bank Restructuring Agency (IBRA) announced on
Friday that it had collected Rp 16.5 trillion in cash during the
first half of this year from the sale of assets and loans.

IBRA chairman Syafruddin Temmenggung said the collected amount
accounted for almost 40 percent of the Rp 42 trillion full-year
target, which is mainly to be used to help plug the gaping 2002
state budget deficit.

Syafruddin was also optimistic that the agency would meet the
full-year target.

While planning to sell a majority stake in three more
recapitalized banks this year, it is currently also in the
process of selling 2,500 credit portfolios worth over Rp 150
trillion.

However, there has been concern that IBRA might not be able to
meet the target amid signs that the sale of bank shares could be
further delayed due to the current weak market sentiment.

Analysts have said the weak response in the sale of Bank Niaga
shares in the stock market this week, could prompt the agency to
push back the sale of a majority stake in the bank in mid-
September this year.

Aside from banks' divestment, IBRA is now also placing the Rp
150 trillion of non-performing loans for sale. But many doubt
whether this loan sale program will attract credible bidders as
local banks seem to be uninterested. -- JP