BTN to use 90% of credits for housing projects.
Publicly listed state-owned saving bank, Bank Tabungan Negara
(BTN), said it will allocated 90% or Rp 3.67 trillion of its new credits
to be extended in 2005 for the housing sector and supporting facilities.
BTN President Kodrati said part of the fund will be used to finance
development of 75,000 units of low cost houses this year. Kodrati said
the bank has been successful so far in the housing sector as development
of the property sector has been faster than expectedly. He said the
interest rates on housing credits now range from 11% to 14%, the highest
so far for low cost houses. He said BTN's interest rates on housing
credits are higher than offered by othe/banks as BTN raised its capital
mainly through bond issues. (BI/12/01/05)