Thursday, October 19, 2006

Capital market surpass bank loans

The amount of fund raised by Indonesian companies through capital market (equity & debt) has reached Rp44 trillion, surpassing total bank loans of Rp40 trillion in the first nine months of 2006. Why?

Bank Indonesia deputy governor Hartadi Sarwono admitted bank loans growth for 2006 would be well below target at 20% as the first nine months has only grown by 7% despite improvement in the last two months following significant interest rate cut.
The central bank reported Rp21.4 trillion fund raised from Indonesian capital market and US$2.3 billion from international bond issuance in Jan-Sept.
Bankers blamed investigations on state-owned bank loan disbursements have reduced Indonesian companies' appetite amid low interest rate. Recent bond & debt issuance in global market of Indonesian companies shown high interest rate charged such as Bumi Resources around 11% loan facilities.




Anonymous Anonymous said...

Maaf, ini sekedar test

October 19, 2006 8:42 AM  

Post a Comment

<< Home