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February 27, 2008 |
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BANK TABUNGAN: Plans to Raise IDR1 Tril. from Bond Issuance PT Bank Tabungan Negara plans to raise IDR1 trillion through bond issuance this year to expand lending, Reuters reports citing President Director Iqbal Latanro . According to the report, the bank aimed to extend IDR10.4 trillion worth of loans this year, from IDR8 trillion of loans in 2007. Tyagita Silka of Reuters writes that the bank was appointed by the government as the main financial institution to provide subsidised mortgage loans to the low-income segment in 1974, but in the last six years it has been encouraged to develop commercial non-subsidised mortgage loans. Headquartered in Jakarta, Indonesia, Bank Tabungan Negara (Persero) -- http://www.btn.co.id/ -- is a state-owned bank involved in commercial banking. In 1974, Bank Tabungan was appointed as the financing institution for low- to medium-income housing in an effort to support the Government's housing development program. Nonetheless, BTN suffered huge losses from large corporate lending during the 1997 economic crisis. The Government then recapitalized the Bank, and still wholly owns it. BTN is now the smallest state bank, but retains a dominating 31% share in housing loans as of end-2004. In 2002, the Government directed it to focus on commercial housing loans. Hence, its subsidized housing loans dropped to 44% of its portfolio at July 2005 from 75% at end-2002. * * * On Oct. 19, 2007, that Moody's Investors Service raised the foreign currency long-term debt and foreign currency long-term deposit ratings of Bank Tabungan Negara. -- The foreign currency long-term deposit rating was raised to B1 from B2. -- The Not Prime foreign currency short-term deposit rating, Baa2 global local currency deposit rating and D- BFSR were unaffected. All ratings carry a stable outlook. |
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