International bankers are to resume talks Friday in Tokyo with the Indonesian government over restructuring billions of dollars of foreign debts owed by private Indonesian firms.
The deliberations are expected to continue into Sunday, according to banking officials in Tokyo. The negotiations follow an earlier round of discussions held in New York last month and are to be jointly chaired by representatives of the Bank of Tokyo-Mitsubishi, Chase Manhattan Corp. and Deutsche Bank AG, the officials said.
After the New York talks, a statement was issued saying that the parties involved would work on a debt-repayment plan based on the “ficorca” model set up to solve Mexico’s debt problems in 1983.
At the time, government guarantees were set for private-sector debts and determined a range for the peso on the foreign exchange market to protect investors from sharp fluctuations in exchange rates.
The rupiah’s plunge in recent months has left numerous Indonesian companies technically bankrupt as they have been unable to meet payments on loans made in foreign currencies.
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