IFC pledges to help clients settle debts
IFC pledges to help clients settle debts
JAKARTA (JP): The International Finance Corporation (IFC), the
private sector arm of the World Bank, is currently reviewing the
performance of its 42 clients in Indonesia to assess their
liquidity requirements and their capacity to service their
foreign debts.
"We are fully committed to helping ensure that the long-term
viability of our clients is preserved and the interests of the
creditors are protected," said Assaad Jabre, the head of a
visiting IFC team over the weekend.
Jabre, IFC Vice President, said in a statement that IFC and a
number of international banks had thus far disbursed US$1.1
billion in equity and loan funds to 42 companies in the country.
Jabre and a team which included Rashad Kaldany, director of
the Asia Department, and Hany Assaad, manager of the Asia Capital
Markets and Antonio David, the IFC regional representative in
Jakarta, spent the whole of last week assessing first hand the
impact of the financial crisis on Indonesian enterprises, notably
its 42 clients.
"Several teams of IFC staff are currently in the country or
will be arriving here shortly to assess the performance of its 42
IFC clients on a case-by-case basis," Jabre added.
He said IFC endorsed the fundamental principles applied by the
Indonesian Corporate Debt Settlement Team, headed by Radius
Prawiro, in its initiatives to arrange creditor-debtor
negotiations.
The fundamental principles are that debts negotiations are
voluntary and subject to mutual agreement and on a case-by case
basis and that debtors which are sound and able to service their
foreign debts should do so.
Radius disclosed last week that Indonesian foreign debts as of
December totaled $137.42 billion, of which $63.46 billion was
owed by the government and state enterprises, $30.52 billion by
foreign firms and Indonesian-foreign joint ventures, $23.07
billion by private national firms, $8.46 billion by national and
foreign finance institutions and $11.90 billion in commercial
papers and medium-term and promissory notes. (vin)