Banks plan for credit growth of 22 pct in 2007

Jakarta (Antara News) - National banking sector is planning for a credit growth of 22 percent in 2007 or higher than the realization of banking credit growth of 14.1 percent in 2006, an official said.

"Report on the bank credit growth has already been conveyed to Bank Indonesia. The report shows that the national bank credit plan minus BPD will grow by 22 percent," central bank deputy governor Mulyaman D Hadad said here Tuesday.

"National bank credit grew by 14 percent last year. So, if it can raise 18 percent this year it will be good enough let alone if it reaches 22 percent, it will be very encouraging," he said.

The bank credit scheme is a guide for the central bank to observation of banks` efforts to realize the plan, he said.

Half of the bank credit growth of 22 percent will be allotted to micro small medium enterprises (UMKM) sector.

Bank credit growth was recorded at 14.1 percent or Rp102.8 trillion in 2006, lower than 22.7 percent or Rp135.1 trillion in 2005.

Mulyaman also said there are 14 banks which are interested in making a consolidation through a merger, acquisition or capital enlargement in order to reach a target for minimal capital value of Rp80 billion late 2007.
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