Medco Group settles debt payment to Bahana

Medco Group has settled its principal debts of about US$52 million to state owned investment company PT Bahana. The business group also received approval from the investment company to reschedule the payment of the interest of the debts totaling $13 million until October, this year, Koran Tempo reported on Friday.

The director of Medco Group, Hilmy Panigoro, said in Jakarta on Thursday that $25 million of the total principal loans were repaid in January 25. "With the payment, Medco has settled 100 percent of its principal debts to Bahana," he said.

About the payment for the interest of the debts, Bahana agreed to reschedule it until October, this year. "We use 2.4 percent of Medco Energi Internasional shares as the collateral for the interest payment," he added.

Medco Group?s debts to Bahana initially reached $97 million. Due to the financial crisis, the payment of about $75 million of the total debts was rescheduled until December, last year. As Medco could not settle all the debt payment based on the new schedule, Bahana agreed to extend the payment until October this year. (*)