Commission IX for the House has delayed the agreement of the reprofiling of 4 recap bonds in 4 State Enterprises bank. The agreement is delayed because the Commission IX has not yet approved there the additional interest to reach Rp 824B per year in the State Budget, said the head of Commission IX, Max Moein, as quoted from Media, yesterday.

"We (Commission IX) asked the additional interest given to bank by Rp 824B to be erased," said Max.

According to him, the addition of expense for the state budget for the addition of interest expense is really burdening. The interest should be given to the bank recap should give profits in years.

Max added, basically Commission IX agreed the government plan. Yet, right now Commission IX is still waiting for the government answer about how much the dividend the banks will give.

The talk about the next reprofiling will be discussed in the second House sessions starting on October 25 2002.

The recap bonds that are rescheduled are those under the control of Bank Mandiri, Bank Negara Indonesia (BNII), Bank Tabungan Negara (BTN), and Bank Rakyat Indonesia (BRI). The bond period will be changed from 2004-2009 to 2010-2020. The value of reprofiled bond predictably will reach Rp 174,59T.