IBRA secures restructuring deals

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) said on Monday it had reached preliminary agreements with at least 242 debtors for debt restructuring schemes worth Rp 23.1 trillion (about US$2.43 billion).

IBRA said the restructuring deals covered debtors with debts of below Rp 1 trillion.

"At least 242 debtors have agreed to sign a memorandum of understanding for the restructuring of debts worth Rp 23.1 trillion," IBRA said in a statement.

If finalized, IBRA will have restructured in total Rp 33.18 trillion in debts owned by debtors with debts under Rp 1 trillion.

Among the 242 companies joining the latest restructuring deals are PT Bakrie Brothers which owes IBRA Rp 565 billion, PT Barito Pacific Timber which owes Rp 98.92 billion, PT Sinar Mas Multifinance with Rp 228.60 billion and PT Texmaco Jaya with Rp 438.58 billion debt.

IBRA said that part of the restructuring had been conducted by its outsourcing agents.

The agency was founded by the government in 1998 to restructure bad debts it took over from local banks hit by the 1997 financial crisis.

Banks handed over their nonperforming loans to IBRA in exchange for recapitalization bonds, on which most banks now rely for their revenues.

Once IBRA has restructured the loans, the agency can either sell or swap them with recapitalization bonds in banks to help ease the burden of the state budget.

State Minister for National Development Planning Kwik Kian Gie said he would establish a division at the National Development Planning Agency (Bappenas) to analyze the financial health of indebted companies under IBRA.

"The government must have super micro economics capability," he told a hearing with the House of Representatives' state budget commission.

Equipped with its own analyses on debtors, he explained, the government could better control IBRA's debt restructuring deals.(bkm)