Banks Rely on Foreign Stand-by Loan
18 June 2015 14:22 WIB
TEMPO.CO, Jakarta - A number of banks is planning to use foreign loans to fund this year's business expansion plans.
Bank Tabungan Pensuinan Nasional Tbk (BTPN) has obtained a 5-year loan commitment of US$500 million from Japan's Sumitomo Mitsui Banking Corporation (SMBC) and the International Finance Corporation.
BTPN vice president director Ongki Wanadjati Dana said the loan will be used to finance business growth and to cut down on funding expenses, Bisnis Indonesia reported.
Meanwhile, PT Bank Internasional Indonesia Tbk (BII) got a US$300 million stand-by loan from its parent company Malayan Banking Bhd (Maybank). The loan will be used to expand its sharia business unit.
According to Bank Indonesia (BI) the amount of foreign loans obtained by banks per March 2015 was US$31.34 billion. Most of the loans were obtained by private banks with a portion of 89.3 percent.
BISNIS.COM | RR