Ruling on CPs eased

Ruling on CPs eased

JAKARTA (JP): Bank Indonesia, the central bank, has eased its
ruling on the issuance of commercial papers (CPs) on the local
money market.

In a ruling issued last week, the central bank stated that it
will allow the trading of CPs even if their ratings are still
being processed by PT Pefindo, the country's only rating agency.

According to Bank Indonesia's earlier ruling, commercial
papers should first be rated by a rating agency before being
sold.

However, Pefindo, which also has the task to rate bond
instruments, is still short of staff to carry out its rating
activities. As a consequence, many companies have not been able
to sell their CPs on schedule due to delays in the rating
process. (hen)