Govt expected to convert Rp 21.5 trillion worth of loan in PLN into equity
Thursday, November 9 2000 - 03:30 AM WIB
State owned electricity company PLN expects the government will convert this year at least Rp 21.5 trillion of its Rp 43 trillion (US$1=Rp 9,250) loan to the power company into equity, Suara Karya reported on Thursday.
PLN president Kuntoro Mangkusubroto said in Jakarta on Wednesday that if the conversion of the government's loan into equity was essential to speed up the restructuring process of the state electricity company's massive debts.
He said that PLN owed the government about Rp 43 trillion in the form of two-stage loans provided by foreign creditors.
Kuntoro said that in addition to the government, PLN also owed trillions of rupiah to state banks, bondholders and independent power producers. He said that the company had allocated about Rp 9 trillion to settle unpaid claims to independent power producers this year. But the amount that could be realized only about Rp 2.25 trillion, he added.
According to Kuntoro, PLN's total loss was expected to reach Rp 11 trillion this year. (*)