| PRESS DIGEST-Indonesian Business News - Jan 28
Following are the leading business stories in the main Indonesian newspapers on Jan. 28. Reuters has not verified these stories and does not vouch for their accuracy. Telephone: Editorial: +62-21-384-6364. Fax: +62-21-344-8404 or Help Desk: +803-061-2124 (toll free). - - - - BISNIS INDONESIA - MANDIRI TARGETS 20 PERCENT LOAN GROWTH THIS YEAR Indonesia's largest lender, PT Bank Mandiri Tbk BMNR.JK, expects loan to grow by 20 percent to 25.2 trillion rupiah this year, its president director said on Sunday. - BNI TO RECEIVE $150 MILLION LOAN Indonesia's fourth largest lender, PT Bank Negara Indonesia BBNI.JK, is set to receive a $150 million loan from Standard Chartered Bank (STAN.L: Quote, Profile, Research) to refinance its debt and extend loans, an executive said.
A million 'could lose home' in credit crunch
Other debts such as personal loans, credit cards and overdrafts could cause the problems. Home repossessions are already rising rapidly, soaring from just 3,700 between January and June 2004 to 14,000 during the same period last year. Mark Sands, director of personal insolvency at the accountants KPMG, said: 'It is a "drip by drip" problem. An extra £5 on their mortgage, £10 on their council tax bill and so on is really putting the squeeze on people who are financially overstretched already.' Many homeowners coming to the end of an existing fixedrate deal may not be able to switch to another loan with a cheap rate, and will have to stay on at the much less attractive standard variable rate. Banks and building societies will see them as a high-risk customer. An FSA spokesman said: 'We are not saying this scenario will definitely happen but we want to raise awareness of the risks.
RAMS smashed despite Westpac buy
Westpac Bank will take over the future business of RAMS Home Loans Group, swooping on the assets of the lender which struggled to refinance its debt following the US subprime mortgage crisis. RAMS shares tumbled as much as 22 per cent today after Westpac, Australia's fourth-largest bank, said it would buy the RAMS franchise and brand for $140 million and refinance some of its debt, but not take on its existing mortgage book. The deal was hailed as a cheap buy for Westpac which is seeking to expand its mortgages arm, but will leave RAMS as an operation with no new business from November that will service only existing loans. "RAMS looks like a business in run-down, it doesn't have much of a future at all,'' said Argo Investments Managing Director Rob Patterson.
State EDA will be on $3 million hook if Western Greenbrier Co ...
The West Virginia Economic Development Authority is on the hook for $3 million if a proposed $400 million clean coal power plant in Greenbrier County does not get built.Western Greenbrier Co-Generation ran into financial trouble when its efforts to refinance a $4.87 million loan with First National Bank of Ronceverte fell through, the Associated Press reported last week.The Economic Development Authority — the state's financing agency for development projects — had guaranteed $3 million of the loan, said David Warner, the authority's executive director. First National had decided not to extend the loan, he said, and Summit Community Bank had agreed to do so. Warner said that during its Oct. 18 meeting the authority's board of directors approved the same loan guarantee for Summit Community Bank."Western Greenbrier Co-Generation was not able to meet all of the conditions to close the loan with Summit," Warner said.
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