Here's some more details on those bank loans to Indonesia we were discussing earlier. It's nice summary of all the debt. Looks like the Germans are attempting to renegotiate.
How much money did the IMF actually release? Anyone know.
MikeM(From Florida)
From the South China Post:
>>Banks Face US$80b Write-off
The tide of violence engulfing Jakarta yesterday brought the country's economy to a virtual standstill, throwing into doubt the future of the International Monetary Fund's rescue plan and efforts by foreign banks to recover US$80 billion in loans to Indonesian companies. Stock market and currency trading seized up as bank and commercial offices closed amid continuing fears about the safety of employees.
The economic and political dislocation has left the IMF's $43 billion emergency plan in tatters and urgent efforts are being made at the fund's headquarters in Washington to monitor the situation. The government has already been forced to back down on a key element of the plan, and reconsideration of other key aspects of the arrangement such as sensitive price issues is under way in an effort to appease the rioters.
At the same time, foreign banks - especially Deutsche Bank and Chase Manhattan, which are attempting to renegotiate loan arrangements with their biggest borrowers - are facing even larger than expected write-offs. Deutsche Bank is to host a third round of talks in two weeks between Indonesian executives and banks in Frankfurt. However, these must be in jeopardy as the country's financial framework crumbles. Write-offs of such a size would batter banks already hurt by slowing growth, weakening currencies and mounting defaults across Asia. At best, the process of renegotiating Indonesian companies' debts may drag on longer than many had expected because of this week's violence. Some fund managers and analysts have already estimated that the banks may have to write off as much as 70 per cent of what they are owed.
Japanese banks earlier this month issued a statement saying little progress was made during discussions with Indonesian officials on the thorny problem of setting new terms for the corporate debt repayment, which was already threatened by the 74 per cent plunge of the rupiah against the dollar in the past year. "The events of the past few days diminish everyone's expectations of what the government may actually provide," Don Hanna, a regional economist at Goldman Sachs in Hong Kong, said. Japanese banks account for about 40 per cent of total debt. Bank of Tokyo-Mitsubishi had about $3.2 billion in loans outstanding at the end of September. Hongkong Bank is owed $1.8 billion.<<
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