There are encouraging signs from Indonesia that the Indonesian Bank Restructuring Agency IBRA is getting tough on its recalcitrant debtors. The catalyst is the recent signing of a new letter of intent with the International Monetary Fund IMF, which states that all negotiations with problematic debtors have to have been concluded by October this year.
The Indonesian Attorney-General Marzuki Darusman said on Monday that owners of banks taken over by IBRA in the aftermath of the financial crisis have until September to reach agreement with IBRA otherwise the Committee for the Settlement of Problematic Debtors will take legal action against them in October. The committee - which was set up in July -...
