Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Government Seeking New Debt Schedule for Garuda
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Government Seeking New Debt Schedule for Garuda

Can Garuda Reduce its Debt Burden from US$794 Million to Just US$274 Million?


Bali News:
Click Image to Enlarge

(6/10/2006)

Indonesia's Minister of Transportation, M. Hatta Rajasa, has stated that the Government will soon propose a debt rescheduling to the European Credit Agency (ECA) - the consortium that holds the bulk of Airlines estimated US$794 million debt.

Fundamental to any rescheduling that may be finally agreed is an agreement by Garuda's creditors to a haircut or basic reduction in the outstanding principal and interest owed them.

The Government has established a steering committee consisting of representatives from the Ministry of State-Owned Enterprises, the Finance Ministry, and the Department of Transportation to guide a Government team attempting to renegotiate its debts with the ECA.

Minister Hatta, quoted in the Indonesian-language Bisnis Indonesia, complained that the 6 Airbus A330 aircraft, purchased via ECA loans by Garuda Indonesia in 1996, appeared to be over-priced for the actual market value of the aircraft at that time.

In desperate need to improve the condition of its balance sheet, Garuda is exploring a whole range of options - including a business-to-business renegotiation of its debt burden, a conversion of debt to equity and a rescheduling of its outstanding debt burden. Meanwhile, the Indonesian National Carrier is undertaking dramatic steps to enhance its operational efficiency by cutting operational costs by 10% system-wide, rationalizing its international and domestic route system, and reducing the types of aircraft it flies.

Pending finally coming to an agreement with ECA on its debt total, Garuda has ceased from late 2005 to make payments on its principal debt of US$794 million.

According to local press report, Garuda is seeking to reduce its debt burden from US$794 million to US$274 via the combination an agreed haircut with ECA and a conversion of outstanding debt to equity.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

   

 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
A Sinking Feeling
PT Pelni Doubles the Maximum Passenger Limits on its Passenger Ships Over the Year End Holiday Period
(12/13/2014)
What a Difference a Day Makes
Provincial Workers in Bali Government Granted Only a One-Day Holiday at Galungan
(12/13/2014)
When is Enough, Enough?
While Government Targets 20 Million Foreign Tourists by 2019, Concerns Expressed Regarding Carrying Capacity of Indonesia’s Tourism Infrastructure
(12/13/2014)
Tax and Service Included
Requirement to Include Airport Service Charge in Price of Airline Tickets Postponed until March 1, 2015
(12/13/2014)
From the Past, into the Present, for the Future
An exhibition of Batik by Museum Kain at the Ganesha Gallery in Bali from December 25, 2014 – January 2, 2015
(12/13/2014)
What's Cooking for Christmas?
Bali Culinary Professionals Christmas Party on Saturday, December 20, 2014
(12/13/2014)
90% Arrivals from Domestic & Regional Sourcess
Bali by the Numbers: While November Foreign Tourist Arrival Dip, Bali Likely to End 2014 with 3.7 million Foreign Visitors
(12/13/2014)
Sounds of the Season
Bali Community Choir in Concert of Christmas Music on Friday, December 19, 2014
(12/13/2014)
Lavishing on our Lavatories
Governor Identifies Clean Toilets at Government Offices as Fundamental to Good Public Service
(12/13/2014)
Benoa Bay: Ankle Deep in Troubles
Increasing Shallowness of Benoa Bay Underlines Need to Revitalize the Area’s Natural Environment
(12/13/2014)
The Wretched Refuse of Your Teeming Shores
Mountains of Trash Wash Ashore in Kuta in Seasonal Blight on Bali’s Shores
(12/13/2014)
The Law School of Big Locks
Balinese Law Student Sentenced to 9-Year Prison for Marijuana Possession
(12/13/2014)
All [News]!