Foreign loans from parent and affiliated move up

JAKARTA: Foreign loans from parent and affiliated private companies showed upward trend compared to that before crisis of 2008. The increasing trend confirmed foreign confidence over domestic condition.Based on the data compiled by Bank Indonesia, foreign
News Editor | 22 Desember 2010 11:33 WIB

JAKARTA: Foreign loans from parent and affiliated private companies showed upward trend compared to that before crisis of 2008. The increasing trend confirmed foreign confidence over domestic condition.Based on the data compiled by Bank Indonesia, foreign loans from parent and affiliated private companies were only 27.2% in 2007 yet in October 2010, the portion rose to 36.5% of the total foreign private loans.Head of Public Relation Bureau at Bank Indonesia Difi A. Johansyah confirmed that the upward trend indicates parent companies confidence in their local subsidiaries in Indonesia to benefit from higher domestic demand amid the imbalance of global economic recovery.According to him, foreign loans sourced from parent and affiliated companies are more relatively flexible and can be rolled over in a case for future expansion. In addition, as he continued, the loan payment will be possibly rescheduled if debtors experience a liquidity trouble.In October 2010, market share of non-bank parent and affiliated creditors grew to 33.2% from last year's position. On the other hand, the situation indicated lower risk of payment pressure in the non-bank private sector. (T01/NOM)

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Editor : Muhammad Fariz Aulia

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