ID :
32882
Fri, 11/28/2008 - 21:05
Auther :
Shortlink :
https://www.oananews.org//node/32882
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GOVT PREPARING EXPORT FINANCING FACILITY
Jakarta, Nov 28 (ANTARA) - The government is preparing an export financing facility to generate export activities which have been slowing down due to tight banking liquidity as a result of global financial crisis.
"We have met with Bank Indonesia (BI) officials, bankers and exporters several times to discuss the export financing facility," Trade Minister Mari Elka Pangestu said here on Friday.
Band Indonesia (the central bank) is ready to issue a financing facility for goods that had been delivered in order to help exporters in case they faced payment failure, the minister said.
The facility which is called export draft re-discount with recourse will assist banks in obtaining liquidity from the letter of credits (L/C) that had been issued, she said.
"It will reduce the risks exporters might suffer," the trade minister said.
Besides, the government is also preparing an other export financing facility for goods before being delivered. It is aimed at assisting exporters to obtain funds for purchasing raw materials.
"The matter is now being studied while banks are also studying the possibility of obtaining access to international financing institutions," Mari E Pangestu said.
For the purpose, the government is promoting bilateral and regional cooperation between banks and the Indonesian central bank.
The trade minister said that the export financing facility would be used for all export-oriented sectors, including small and medium-sized entrepreneurs (SME).
Export financing facility is important to assure the smoothness of export activities which have begun to be affected by tight bank liquidity in the world.
"In essence, we want to find a way so that countries, including international financial institutions such as the World Bank, IFC and other institutions, are willing to cooperate in supporting export financing," the minister said.
She said that even though the form of cooperation in the export financing was not yet clear, the IFC had taken the initiatives to increase three times the funds for the domestic banking guarantee. ***8***
"We have met with Bank Indonesia (BI) officials, bankers and exporters several times to discuss the export financing facility," Trade Minister Mari Elka Pangestu said here on Friday.
Band Indonesia (the central bank) is ready to issue a financing facility for goods that had been delivered in order to help exporters in case they faced payment failure, the minister said.
The facility which is called export draft re-discount with recourse will assist banks in obtaining liquidity from the letter of credits (L/C) that had been issued, she said.
"It will reduce the risks exporters might suffer," the trade minister said.
Besides, the government is also preparing an other export financing facility for goods before being delivered. It is aimed at assisting exporters to obtain funds for purchasing raw materials.
"The matter is now being studied while banks are also studying the possibility of obtaining access to international financing institutions," Mari E Pangestu said.
For the purpose, the government is promoting bilateral and regional cooperation between banks and the Indonesian central bank.
The trade minister said that the export financing facility would be used for all export-oriented sectors, including small and medium-sized entrepreneurs (SME).
Export financing facility is important to assure the smoothness of export activities which have begun to be affected by tight bank liquidity in the world.
"In essence, we want to find a way so that countries, including international financial institutions such as the World Bank, IFC and other institutions, are willing to cooperate in supporting export financing," the minister said.
She said that even though the form of cooperation in the export financing was not yet clear, the IFC had taken the initiatives to increase three times the funds for the domestic banking guarantee. ***8***
