LONDON: Indonesia's flag ship airlines PT Garuda Indonesia plans to seal debt restructuring with European Credit Agency (ECA) worth US$289 million at Indonesian Embassy in London, today.
President of Garuda Indonesia Emirsyah Satar said that the signing of debt restructuring with ECA will give Garuda room to pay the debt that suit company capability.The signing of this debt restructuring will make Garudas financial foundation way stronger. The debt might come from the previous management but it is our obligation now to pay it off so the next payment could go in line with company capability, as he said at Business Lounge Grand Hyatt, London.The debt position, he continued, until the end of 2005 was US$868 million including US$502 million to ECA and other creditors. Per September, 30 2010 debt was decrease significantly to US$477 million where US$289 millions paid to ECA.The nearly half decline was paid from company operations. At first, Satar informed, ECA asked for government guarantee for the restructuring but the company declined since they did not obtained government approval. But eventually the agency changed their mind after seeing Garudas performance for the past five years.He also affirmed that with the signing of debt restructuring with the ECA, rescheduling is unnecessary. (t05/wiw)
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