IBRA short-lists more NPLs servicing agents

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) has short-listed 11 groups of financial institutions to be servicing agents in the third round of its outsourcing program for commercial credit settlements.

The agency said in a statement over the weekend that the selected financial institutions would help in restructuring some Rp 8.7 trillion (US$1.09 billion) of bank nonperforming loans (NPLs).

Among the shortlisted 11 groups are five that passed the prequalification round for the second tranche of the outsourcing program, namely Bank Central Asia, Bank Lippo, consortium of Bank Niaga, Bank Universal, Niaga Sekuritas and Amir Abadi Jusuf, Sakura Merchant Bank and a consortium of Bank Panin and ANZ.

The remaining six nominees, namely a consortium of Bank Artha Graha and Grant Thornton, Bank BII, a consortium of Bank Buana Indonesia and Sidharta Consulting, Bank Bukopin, DBS Buana and a consortium of Deutsche Bank and BRI, have recently passed the prequalification for the third tranche of the outsourcing.

The agency said that as in the two previous tranches, the selection of servicing agents for the third tranche would be conducted through an open bidding process.

A due diligence and scoring process will be performed on the 11 groups with assistance from consultancy firm Arthur Andersen to nominate the servicing agent for the credit handling program under the third tranche of outsourcing.

The outsourcing program is an effort made by IBRA to accelerate the restructuring of the NPLs worth more than Rp 200 trillion it has received from domestic banks following the country's bank restructuring program.

IBRA is mandated to recover the loans in a bid to help finance the costly bank restructuring program.

IBRA said the outsourcing program took three tranches, scheduled to be completed before June this year, in compliance with the letter of intent signed recently with the International Monetary Fund.

The first tranche of the outsourcing program amounted to Rp 6.3 trillion and was conducted by selected servicing agent Bank Danamon.

While the second tranche, amounting to Rp 5.4 trillion, will be handled by a consortium of Bank Negara Indonesia and Delloite Touche Tohmatsu.

BNI and Deloitte outbid two other financial institutions, Bank Central Asia and a consortium of Bank Panin and ANZ, in the final stage of the scoring process.(cst)