IBRA to raise Rp 24t in cash this month

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) said Tuesday that by the end of the month it will have achieved 88 percent of its target cash earnings of Rp 27 trillion (about US$2.5 billion) for the 2001 state budget.

IBRA Chairman I Putu Gede Ary Suta said that the agency will receive an additional Rp 3.5 trillion later in the month so that "as of Nov. 29 IBRA will have earned Rp 24 trillion."

According to IBRA's monthly report, as of September, earnings had reached Rp 24.4 trillion, comprising Rp 19.2 trillion in cash and Rp 5.2 trillion in bonds.

The September report specified that the largest contributor to earnings was generated by IBRA's Asset Management Credit (AMC) division with Rp 9.4 trillion, or 64 percent of the target earnings.

Other major earners were from the Asset Management Investment (AMI) unit with Rp 6.72 trillion, and from the IBRA Bank Restructuring Unit (BRU) with Rp 499 billion.

IBRA has received various assets worth over Rp 600 trillion from closed banks and former indebted bank owners in the wake of the 1997 financial crisis.

The agency is required to restructure the assets and sell them to raise cash to help finance the state budget deficit.