State Owned Banks to Receive Loans from CDB

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  • TEMPO.CO, Jakarta - The State-Owned Enterprises Ministry said that three state-owned banks would absorb loan funds provided by China Development Bank (CDB) in September 2015, reported on Sunday, September 6.

    Previously, the US$3 billion worth of loans was to be disbursed in August 2015. However, the lengthy discussion related to the interest rate had caused a delay in the loan disbursement.

    Gatot Trihargo, deputy of financial, construction and other services at the State-Owned Enterprises Ministry, said that the fund disbursement from CDB needed to be approved by the Financial Services Authority (OJK) and Bank Indonesia.

    In addition, the three state-owned banks were proposing to conduct hedging to the central bank.

    “The fund will be absorbed this month by Bank Mandiri, BNI and BRI,” Gatot said in Jakarta, adding that the interest rate for the loans had been agreed.

    Earlier, Bank Mandiri treasury and market director Pahala N. Mansury said that 30 percent of the fund would be disbursed in renminbi and the other 70 percent would be in the US dollar. Pahala added that his company would also perform hedging for the loan.