Indonesia govt hopes ECA will offer 'haircut' in Garuda debt restructuring
Jakarta (XFNews-ASIA) - The government is hoping that the European credit agency (ECA) will offer a debt "haircut" as part of a scheme to restructure 500 mln usd that is still owed to the agency by PT Garunda Indonesia, State Enterprises Minister Sugiharto said.
"It should be settled in a business-to-business arrangement. I understand that Garuda met with ECA two weeks ago and they will meet again in September," Sugiharto told reporters.
"We hope that there will be a rescheduling and even a waiver of interest payment," he said.
Garuda's total debt amounts to 794.6 mln usd. The carrier has been facing difficulties in paying debt instalments of some 100 mln usd a year amid increasing competition. Last December, the airline defaulted on a 56 mln usd debt payment.
"I hope there will a constructive solution to the debt problem. And I want creditors to share the pain," Sugiharto added.