ID :
34696
Tue, 12/09/2008 - 18:22
Auther :
Shortlink :
http://m.oananews.org//node/34696
The shortlink copeid
BI WATCHING NON-PERFORMING LOAN DEVELOPMENT
Jakarta, Dec 9 (ANTARA) - Bank Indonesia (BI) Governor Boediono said here on Tuesday the central bank was watching out for a possible rise in non-performing loans in national banks.
The central bank was monitoring the potential of the economic players' overall debt repayment capacity to drop that would lead to increasing non-performing loans in banks in the future," he said at the parliament building.
He said the worsening conditions of the global economy which were predicted to continue in 2009 affected the country's economic performance.
He said the world's slowing demand would eventually reduce export demand and as a result export-oriented industries would lose much of their market that would force them to cut production. The world economic growth is expected to drop from three to 2.2 percent.
The central bank's director of research and banking regulations, Halim Alamsyag, meanwhile said he had already revised the projection of credit growth from 22 to 24 percent to 19 to 22 percent.
"Revision figures are down following assumptions of economic growth in the national budget which are also down following current economic conditions and based upon the data that we have collected we have revised projection to drop to 19 to 22 percent," he said.
He said the decline in growth would occur in particular in the first semester next year. "As the finance minister has said in 2009 the crisis might possibly worsen," he said.
The head of the central bank's bureau of monetary policy, Hendar. said it was still difficult to predict the 2009 situation because of the uncertainty in the current world economic conditions.
He said the realistic impact would be that economic growth would drop as demand also would drop and therefore credit extension would also decline.
"In line with investment growth and slowing consumption distribution of bank credits will drop," he said.
Executive researcher of the bank's bureau of monetary policy, Wiwik Sisto Widayat, said because of the uncertainty in the current economic atmosphere banks would be very careful in extending credits to prevent bad debts.
In 2008 bank credits would still grow above 30 percent. The year on year growth of credits in October 2008 reached 34 percent.
The central bank was monitoring the potential of the economic players' overall debt repayment capacity to drop that would lead to increasing non-performing loans in banks in the future," he said at the parliament building.
He said the worsening conditions of the global economy which were predicted to continue in 2009 affected the country's economic performance.
He said the world's slowing demand would eventually reduce export demand and as a result export-oriented industries would lose much of their market that would force them to cut production. The world economic growth is expected to drop from three to 2.2 percent.
The central bank's director of research and banking regulations, Halim Alamsyag, meanwhile said he had already revised the projection of credit growth from 22 to 24 percent to 19 to 22 percent.
"Revision figures are down following assumptions of economic growth in the national budget which are also down following current economic conditions and based upon the data that we have collected we have revised projection to drop to 19 to 22 percent," he said.
He said the decline in growth would occur in particular in the first semester next year. "As the finance minister has said in 2009 the crisis might possibly worsen," he said.
The head of the central bank's bureau of monetary policy, Hendar. said it was still difficult to predict the 2009 situation because of the uncertainty in the current world economic conditions.
He said the realistic impact would be that economic growth would drop as demand also would drop and therefore credit extension would also decline.
"In line with investment growth and slowing consumption distribution of bank credits will drop," he said.
Executive researcher of the bank's bureau of monetary policy, Wiwik Sisto Widayat, said because of the uncertainty in the current economic atmosphere banks would be very careful in extending credits to prevent bad debts.
In 2008 bank credits would still grow above 30 percent. The year on year growth of credits in October 2008 reached 34 percent.
