IBRA short-lists more NPLs servicing agents

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)