Reduce the Foreign Debt, the source of financing of projects Is Overhauled

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Jakarta -the Government was determined to reduce the foreign debt through the Cabinet Secretariat's letter (Setkab) number: SE-592/Seskab/X/2012 on restrictions on Foreign Loans that can overload the STATE BUDGET/BUDGET. Sources of financing a number of projects were overhauled.

Chief Cabinet Secretary (Seskab), Dipo Alam said, it gets input from CIVIL SERVANTS of the Ministry of menengarai the possibility of filing a loan or foreign debt that could potentially do kongkalikong between a plurality of partners who initiates the project with officials at the Ministry of persons for debt agreement, which also involves a person in the HOUSE of REPRESENTATIVES for approval.

Therefore, Seskab ask Bappenas to reassess the project that will be financed by foreign debt. Seskab requested that the foreign debt is limited as much as possible and avoid. To reduce the debt, the Government could also give the project to be implemented in STATE-OWNED ENTERPRISES or private so as not to become a burden on the limited number of STATE BUDGET.

"The letter Seskab earlier to Bappenas and SE-592, then some projects with PLN (foreign loans) that goes in the draft Blue Book list Bappenas has done a revision with a cancelled project proposal and/or move the project again with PLN was carried out by the Ministry, then be done as investment STATE-OWNED ENTERPRISES, as well as reduced the proposed loan amount," said Dipo in a news conference in his Office, The veteran, Jakarta, Monday (12/11/2012).

The proposed projects were cancelled, transferred, or reduced the amount of the loan include:

I. examples of projects that are experiencing a shift in financing:

a. the project originally proposed financed with foreign loans through the forwarding loan (SLA/subsidiary loan agreement) is converted into direct lending by STATE-OWNED ENTERPRISES, namely: (1) identity of Gede's Hydropower Project (175 MW) and (2) Central and West Java 500kV Transmission Line Project;
b. proposed Project that originally financed with foreign loans converted into the assignment to the STATE-OWNED ENTERPRISES, among others: (1) Large Terbanggi Bakauheni – Toll Road Development Project, (2) the Palembang-Indralaya Toll Road Development Project, (3) Kualanamu-High cliffs of Toll Road Development Project, (4) Medan-Binjai Toll Road Development Project, and (5) Pekanbaru-Kandis-Damai Toll Road Development Project;
c. proposed Project that originally financed with foreign loans converted into rupiah funded with pure, for example Procurement of 8 Units of a State Navigation Vessels.

II. examples of projects with foreign loans that are experiencing a reduction in lending, among other New Cilamaya Port Development Project.

III. examples of projects with foreign loans are cancelled, among other Projects in the Ministry of regional development, namely Support for Poor and Disadvantaged Areas (SPADA) Phase II.

(dnl/hen)



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