‘Hidden’ defaults set to soar as recession squeezes firms

‘Hidden’ defaults set to soar as recession squeezes firms

first_imgIn the practice, borrowers offer creditors new or restructured debt securities in exchange for the ones they hold. Companies can also offer cash to buy back notes at a substantial discount to the principal. In sum, the packages amount to less than what the firms originally owed.Distressed exchanges can be acrimonious at times, as was the case for Chinese firm Asia Aluminum Holdings Ltd., where bondholders formed a group to oppose a buyback proposal in 2009, as they felt it was too low. The company eventually canceled the bond buyback and liquidators were appointed.Investors may agree to distressed exchanges for a variety of reasons: they might believe the borrower just needs time to turn things around, or they may feel they would lose more if the company were immediately pushed into liquidation.In some instances, investors even initiate the discussion with the company to buy back bonds as they are keen to liquidate their holdings and can’t find other buyers, according to Xavier Jean, senior director for corporate ratings at S&P Global Ratings.While the exchange price may be higher than the current market price, it is important for investors to look beyond short-term mark-to-market gains as they don’t get their principal back, according to Raymond Chia, head of credit research for Asia-excluding Japan at Schroder Investment Management.The winner in distressed exchanges is “always the company” and the loser is the investor, he said. “Distressed exchanges often are just ‘bandages’ and the firm eventually goes bankrupt,” said Edward Altman, a professor emeritus at New York University’s Stern School of Business and director of credit and debt market research at the NYU Salomon Center. Altman, who developed a widely used method called the Z-score for predicting business failures, estimates that up to 40 percent of distressed exchanges end in bankruptcy within three years.Winners, LosersThe Covid-19 outbreak and unprecedented lockdowns prompted the International Monetary Fund to predict that the “Great Lockdown” recession would be the steepest in almost a century. If history is any guide, that means there will be a surge in distressed exchanges.There was a spike in such practices during the global financial crisis, and cases have remained high in recent years as borrowers struggled under debt they had piled on in a decade of cheap money. Distressed exchanges as a share of total defaults rose from around 10 percent in the years before 2008 to roughly 40 percent subsequently, according to Moody’s in March. The worst recession since the Great Depression is prompting indebted companies to default, and increasingly more will do so in a way that’s harder for investors to detect.Rating firms predict that more companies will pursue distressed debt exchanges, in which they try to overcome liquidity problems by swapping debt or buying it back at steep discounts. Such moves are less stark than missed payments and can fly under the radar for the general investing public, but often result in losses for creditors and are usually counted as defaults by rating companies.Moody’s Investors Service forecasts an increase in the overall number of distressed exchanges amid the economic downturn stemming from the coronavirus pandemic and low oil prices. Fitch Ratings said the “price dislocation” in high-yield bond markets could lead to a surge in the practice. There have already been a handful of them this year, including Indonesian coal firm Geo Energy Resources Ltd. and Chinese business park developer Yida China Holdings Ltd.center_img Topics :last_img read more

Heat, water woes and coronavirus: India’s perfect storm

Heat, water woes and coronavirus: India’s perfect storm

first_imgBollywood stars and political leaders have urged Indians to wash their hands to protect against coronavirus but that’s a pipe dream for slum-dwellers like Bala Devi, now sweltering through a summer heatwave.The 44-year-old widow and her family of eight are among tens of millions of people facing months of torrid weather while stuck at home, in lockdown, without regular access to clean water to keep cool and wash.”It is so hot the children keep asking for water to drink. How can I give them water for washing their hands when we don’t have even enough water to drink?” Devi said at her cramped home in New Delhi. “Already our children are falling sick,” she added, her half-naked toddler hanging from her arms. Liquid gold Even before the coronavirus pandemic, water was in short supply for the 100 million people living in India’s urban slums.Prime Minister Narendra Modi’s government has listed water infrastructure as a key priority, promising to reach 145 million rural households by 2024.But currently roughly a third of the country’s 1.3 billion people cut back on washing and bathing during summer as taps run dry.Trucks deliver water to areas suffering shortfalls during the summer months but fights regularly break out in long queues to the tap.Last year the southern city of Chennai ran out of water entirely.Heatwaves are increasing in frequency, and this week the mercury hit 50 Celsius in western Rajasthan state. Parts of Delhi recorded their hottest May temperatures in almost 20 years.Heat stress has killed around 3,500 people around the country since 2015, according to government figures, while farmers have killed themselves because of droughts ravaging their crops.Only around seven percent of Indian households have air conditioning, despite rising incomes making the luxury more affordable for some.Tarun Gopalakrishnan from the Centre for Science and Environment think-tank said India must brace for frequent periods of extreme heat in the future.”When we look at the seasonal averages we sometimes miss the picture that the extremes are increasing, causing massive social disruptions,” he told AFP. “Every drop of water is a luxury for us. We can’t afford to spend it on bathing,” she told AFP, pinching her nose at the waft of clogged drains as unwashed children milled around her.Outside it is around 45 degrees Celsius (113 degrees Fahrenheit) but her one-bedroom tenement house has just an improvised ceiling fan to keep its occupants cool.There is a piped water connection but the supply is extremely erratic and a pump connected to the groundwater mostly spews air. Her family uses a common public toilet and their “bathroom” is a bucket behind a curtain.”If we can’t wash and clean and there is filth everywhere, obviously the virus will attack us, but what can we do?” asked Devi’s neighbor Anita Bisht.center_img More misery India’s coronavirus lockdown is slowly being eased but the restrictions have compounded the miseries of the current heatwave.In Delhi, a sprawling city teeming with 20 million people, demand for water outstrips supply by an estimated 200 million gallons (760 million litres) per day.The daily wait for water trucks in the capital has become even worse since the pandemic hit the city.Lining up for hours with plastic buckets and bottles, slum dwellers are now meant to stand a suitable distance apart — if the government truck ever comes.Lakhpat, a resident of the Sanjay Niwas slum settlement, recently waited in vain for over two hours with dozens of others for the scheduled water tanker to arrive.”Because of the water problem we can’t follow social distancing rules. People stick together closely in the mad rush to get their buckets filled first,” he said. Topics :last_img read more

Biden blasts Trump’s photo op in front of riot-damaged church

Biden blasts Trump’s photo op in front of riot-damaged church

first_imgBiden, the presumptive Democratic presidential candidate in the November election, slammed Trump for “using the American military against the American people,” after the president vowed to order an army crackdown on the sweeping civil unrest.”He tear-gassed peaceful protesters and fired rubber bullets. For a photo,” Biden tweeted late Monday. “For our children, for the very soul of our country, we must defeat him.”Biden also announced he would speak Tuesday in Philadelphia “on the civil unrest facing communities across America.”Washington’s mayor Muriel Bowser called the move “shameful”.”I imposed a curfew at 7pm,” she tweeted. “A full 25 minutes before the curfew & w/o provocation, federal police used munitions on peaceful protestors in front of the White House, an act that will make the job of @DCPoliceDept officers more difficult.”New York governor Andrew Cuomo also expressed outrage over the incident.”What the president did today was he called out the American military against American citizens,” Cuomo tweeted.”He used the military to push out a peaceful protest so he could have a photo op at a church. It’s all just a reality TV show for this president.”The visit enraged Washington’s Episcopal bishop, Marian Budde.The president did not seek permission for the visit, she told CNN, condemning his use of a Bible, failure to pray, failure to acknowledge the agony of Americans and decision to use tear gas on protesters to make the visit.”I am outraged… we distance ourselves from the incendiary language of this president,” she said.”I just can’t believe what my eyes have seen tonight… I had no idea,” she added. Topics : As he spoke, law enforcement — including military police — could be seen firing tear gas to clear peaceful protesters in Lafayette Park, outside the White House, so the president could walk over to the church. Known as “the Church of the Presidents,” St. John’s was sprayed with graffiti and partially damaged by fire during unrest on Sunday.”We have a great country,” Trump declared just outside the Episcopal church, where he held up a Bible. He did not answer questions from reporters before leaving again. The backlash was swift.  US President Donald Trump spurred fresh outrage Monday after police used tear gas to clear protesters from outside the White House so he could pose for photographs at a nearby church damaged during civil unrest.The move earned him a sharp rebuke from the city mayor, the Episcopal bishop, and leading Democrats including former vice president Joe Biden, who decried the use of force merely “for a photo.”Trump’s visit to the historic St John’s Church, across the street from the White House came after he delivered an address denouncing vandalism that has followed anti-racism protests that have gripped the country for a week. last_img read more

Indonesian stocks, rupiah surge in recent weeks despite weak economic outlook

Indonesian stocks, rupiah surge in recent weeks despite weak economic outlook

first_imgIndonesian stocks and the rupiah exchange rate have soared in recent weeks as foreign investors flock to Indonesian assets and bet on a financial market recovery despite a bleak domestic economic outlook.The Jakarta Composite Index (JCI), the main gauge of the Indonesia Stock Exchange (IDX), jumped 2.48 percent on Monday to 5,069 points in line with its Asian peers, which booked increases following upbeat United States employment data. However, the index slipped 0.7 percent on Tuesday, with foreign investors buying Rp 275.01 billion (US$19.52 million) worth of stocks more than they sold.It has rallied by 8.75 percent in the last 30 days until Tuesday, after crashing by 16.76 percent in March only, IDX data showed. So far this year, the JCI has lost more than 20 percent of its value. Meanwhile, the rupiah exchange rate stood at 13,890 per US dollar on Tuesday, gaining around 5 percent since May 28 and 16.2 percent since March 23 when the currency fell to its lowest level since the 1998 Asian financial crisis. The rupiah, therefore, is back to its value prior to the COVID-19 crisis.The recent gains in Indonesia’s financial markets occurred as the economy was likely to slow further than expected this year. The World Bank in its Global Economic Prospect report published on Monday expected Indonesia’s economy to record zero percent growth this year from 5.1 percent projected in January.The government has estimated this year’s growth to reach 2.3 percent under the baseline scenario and even contract 0.4 percent in the worst-case scenario. The country’s first-quarter growth stood at 2.97 percent, the lowest in 19 years and below the government and the central bank’s expectations of around 4 percent.“While Indonesia’s economy will struggle this year, investors remain confident of the potential the country offers in terms of market size and growth,” said Fitch Solutions head of Asia country risk Anwita Basu, adding that efforts made by the central bank had stabilized financial markets. “Bank Indonesia has deployed multiple lines of defense against the rupiah’s weakness that has restored investors’ confidence in rupiah-denominated assets,” she told The Jakarta Post in an email correspondence on Monday.“Furthermore, if Indonesia continues the reform path, the country will likely benefit from supply chain diversification many companies are considering as a lesson drawn from the COVID-19 pandemic and overreliance on China.”Bank Indonesia (BI) decided to hold its benchmark interest rate at 4.5 percent in May despite room for easing as it worked to safeguard the rupiah exchange rate’s stability. The central bank has also bought up to Rp 166 trillion in government bonds in the secondary market during the first quarter of 2020 to stabilize the rupiah and another Rp 26.1 trillion to support budget financing needs, boosting the central bank’s ownership of government bonds to Rp 445.4 trillion.The rallies in Indonesian stocks and currency also supported foreign investors’ rising appetite for risky assets following the easing of COVID-19 restrictions in several countries, spurring hopes of a global economic recovery.Foreign investors bought Rp 8 trillion in Indonesian stocks throughout last month, Financial Services Authority (OJK) data show. However, they still recorded a net sell of Rp 7.56 trillion so far this year, according to IDX data.Indonesia’s sovereign debt market also saw an influx of foreign money last month as the OJK recorded a net foreign buy of Rp 7.07 trillion in May.“There is a gap between market rally and reality as investors bet heavily on economic recovery,” Mirae Asset Sekuritas Indonesia economist Anthony Kevin told the Post. “The current stock market rally is prone to correction as it does not reflect economic fundamentals.”The COVID-19 pandemic, which has upended the job market and choked the cash flows of micro, small and medium businesses (MSMEs), may not justify the current market rally, said Anthony.“In stark contrast, the surge of foreign inflow into the debt market is justified, thanks to low inflation and a stronger rupiah.”The central bank reported Rp 18.67 trillion in net inflows, mainly in sovereign debt papers, from the second week of May to the first week of June. From April 1 to May 14, BI recorded $4.1 billion in net inflows.Topics :last_img read more

Police accused of ethics violation in Novel acid attack case

Police accused of ethics violation in Novel acid attack case

first_img“Everything related to the investigation was under his responsibility, including the allegedly lost evidence, which looks like an action to cover up the crime,” Kurnia Ramadhan, a spokesperson for Novel’s advocacy team, said in a statement on Tuesday.Read also: KPK calls for maximum sentence for Novel attackers amid low-sentence demandAmong the lost evidence were fingerprints from the bottle and glass reportedly used by the perpetrators to carry the acidic solution, as stated by then-Jakarta Police spokesperson Sr. Comr. Argo Yuwono in August 2017. The bottle and the glass were not included in the case’s evidence list.“Witnesses and the victim previously confirmed that the police found the bottle and the glass at the crime scene on the same day of the attack,” Kurnia said, adding that the fingerprints would not have disappeared in such a short period of time. Corruption Eradication Commission (KPK) senior investigator Novel Baswedan’s advocacy team has urged the National Police to investigate an alleged professional ethics violation by the legal team representing two police officers accused of attacking Novel with acid.The advocacy team accused National Police legal division head Insp. Gen. Rudy Heriyanto Adi Nugroho of misusing his authority to hide evidence and cover up the crime allegedly committed by his fellow police officers, Chief Brig. Ronny Bugis and Brig. Rahmat Kadir Mahulette, who are standing trial for allegedly assaulting Novel in April 2017.At the time of the incident, Rudy was the Jakarta Police’s general crime division head. He was responsible for handling the investigation of the crime scene. He is currently leading the legal team representing Ronny and Rahmat in court. Argo said in October 2017 that investigators had gathered 400 CCTV recordings from cameras located within a 500-meter radius of the crime scene.“However, witnesses and the victim claimed the police had not looked into several high-resolution CCTV cameras installed around the victim’s house, which allegedly captured the perpetrators’ faces and their escape routes,” said Kurnia.The team argued that the investigators had not revealed their findings from a process known as cell tower dump surveillance, a technique used to identify suspects through communications intercepted around the scene of a crime.At a hearing on April 30, the North Jakarta District Court presented the robe worn by Novel during the attack. Novel’s advocacy team, however, noticed a rip on the robe, which the police claimed was a result of a forensics investigation.“The victim was never provided information about the forensic investigation. It should be documented,” Kurnia said.Read also: Jokowi hopes for ‘fair’ verdict in Novel Baswedan’s acid attack trial: State PalaceThe advocacy team and other activists have criticized the National Police for giving legal assistance to the two defendants, citing a potential conflict of interest in the legal process.Prosecutors have demanded a one-year prison sentence for Rahmat and Ronny for their alleged roles in the attacked against Novel Baswedan. The acid attack caused severe damage to the KPK investigator’s left eye.Activists and the public have decried the suggested sentence, questioning the legal team’s argument that the defendants had no intention of committing such a crime and that the attack was not planned, despite the fact that Rahmat had scouted Novel’s house several days before.Topics :last_img read more

Japan and judo – an unbreakable bond

Japan and judo – an unbreakable bond

first_imgWhen the Tokyo Olympics eventually open a year late, one of the hottest tickets in town will be for judo. Invented in Japan and first introduced at Tokyo 1964, judo is coming home. Judo, Japan and the Olympics have an inextricable bond. The sport was created in the late 19th century by the revered Jigoro Kano, who would become Japan’s — and Asia’s — first International Olympic Committee member.Kano, whose portrait gazes down benevolently at every dojo, was the driving force behind Japan first taking part in the Olympics in 1912, travelling to Stockholm as team captain and meeting Olympics founding father Baron Pierre de Courbertin. He is still held in reverence today by judoka all around the world, especially at Tokyo’s Kodokan, the home of the sport, which attracts wide-eyed judo enthusiasts from all over the world for its famous winter training — open to all prepared to start at 5:00 am. He was also instrumental in Tokyo being awarded the Games in 1940 — an Olympics that never took place due to Japanese aggression in China and the outbreak of World War II.De Courbertin believed Kano’s judo philosophy and the Olympic ideal were perfect bedfellows. Kano named the martial art “judo” meaning “the gentle way” and saw it as a means of developing both the body and the mind.Kano was way ahead of his time in terms of inclusivity. He encouraged women to take up the sport and at first did not charge for classes, believing everyone regardless of rank, wealth or social class should have the opportunity to enjoy judo. Judo’s founder is also closely linked with the development of sport in Japan. He believed that “nothing is more important in this world than education” and oversaw the introduction of physical education as part of the school curriculum. Topics : ‘Work together’ Modern sporting Japan relies on judo for a fair share of its Olympic medals and will be hoping for a large haul in Tokyo. Judo is top of the list in terms of Japanese Olympic success, with 39 golds — ahead of wrestling with 32 and gymnastics with 31.Japan is also by far the most successful nation when it comes to Olympic judo. Its 39 golds equals the next four best countries combined — France (14 golds), South Korea (11), China (eight) and Cuba (six).Before the one-year Olympic postponement due to coronavirus, the Japanese team was in dominant form, topping the medal table at the 2019 World Championship held in Tokyo with 15 medals including four golds.World champions Joshiro Maruyama and Shohei Ono are hotly tipped in the men’s competition while Japan also boasts women’s world champions in Uta Abe and Akira Sone.To mark judo’s importance for Japan ahead of the Tokyo 2020 Olympics, AFP is publishing a series of multimedia stories looking at the sport and its deep cultural roots in the country.AFP journalists have visited Kano’s hometown to meet members of his sake-brewing extended family, interviewed female champions past and present to gauge the standing of women’s judo in Japan and profiled the extraordinary Ueno dynasty, where three daughters won Olympic or world championship Gold.Other stories include a look at the niche world of judo therapy to treat ailments and an ancient judo uniform factory that still weaves its own materials.The series is not limited to Japan. There is also a profile of a Bali-based self-styled “judo missionary”, who has spent his life travelling in some 20 countries to teach judo and who offers a salutary message for the coronavirus era.The key tenets of judo, says 75-year-old Tsuneo Sengoku, are patience and compassion, both needed during this time of lockdown and disease.”It’s time to exercise grand master Kano’s spirit of Jita-Kyoei [mutual prosperity for oneself and others],” he said. “I want to call on people to hang on and work together.”last_img read more

E-cigarette maker Juul plans layoffs, Europe and Asia exit: Report

E-cigarette maker Juul plans layoffs, Europe and Asia exit: Report

first_imgTroubled e-cigarette maker Juul plans to pull out of Europe and Asia and lay off more workers after already shedding a third of its workforce, the Wall Street Journal said Wednesday.The start-up could end sales in 11 countries including Italy, Germany, Russia, Indonesia and the Philippines, the paper said, noting the US, Canada and Britain accounted for 90 percent of its sales in the first quarter. That is expected to be accompanied by lay-offs, but no precise numbers have yet been announced. Since then, Juul has essentially stopped advertising or selling sweet or fruit-flavored products in the US and has pulled out of several overseas markets such as South Korea, Austria, Belgium, Portugal and Spain, as sales plummeted.It laid off almost a third of its 3,000 workers earlier this year, and now has a staff of around 2,200, the Journal said.In addition, in April the Federal Trade Commission moved to block a huge investment by competitor Altria, which owns the Marlboro brand, in Juul. Altria had spent $12.8 billion for a 35 percent stake in Juul in December 2018, valuing the start-up at $38 billion. Altria now values the company at $12 billion. Juul did not respond to an AFP request for comment late Wednesday.The labor cuts would allow the company to invest in developing new products, according to an email sent to staff by Juul CEO Kevin Crosthwaite.”While those investments will not provide short-term revenue, they will help us earn trust and build a company for the long term,” said Crosthwaite who took over the company a year ago.Juul was accused of illegally selling its products to underage consumers and of having targeted high school kids, unleashing a landslide of lawsuits.center_img Topics :last_img read more

COVID tests completed as Tour de France holds its breath

COVID tests completed as Tour de France holds its breath

first_img‘Living with the virus’ Tour de France director Christian Prudhomme appealed to fans to mask up and play the game on the roadsides.While the vast majority of spectators along the route have played the game, AFP has witnessed a number of unmasked fans approaching riders on the hillsides and shouting encouragement from close range.”It’s nowhere near as bad as most years,” said British rider Adam Yates who wore the yellow jersey for much of the first week. “For me it was all right.”French rider Julien Alaphilippe has also been impressed that most roadside supporters are fully masked up.”I haven’t been counting but most of people I’ve seen have been wearing a mask,” he said on Monday. “It’s well managed. There are people on the climbs, it’s part of the Tour. If everyone respects the rules and wears a mask, then the Tour can continue.” French Prime Minister Jean Castex, who was present on the Tour on Saturday, insisted it was important for France to see the Tour going ahead. “Living with the virus is the doctrine of the Tour and the government, but everyone must protect themselves and obey the rules so that the Tour can take place,” said Castex said.”What I have seen today in my Pyrenees pleased me.”Roglic, who came second in Sunday’s ninth stage, leads defending champion Ineos leader Egan Bernal by 21 seconds. Egan Bernal, Primoz Roglic and the rest of the peloton has undergone a second wave of COVID-19 swab tests with the samples sent to Paris for analysis, the Tour de France testing center confirmed to AFP on Monday’s rest day.Any team returning two or more positive PCR tests, be they riders, managers, doctors, masseurs or mechanics, risks being excluded from the remainder of the race.The original idea was to ban teams where two riders tested positive but two days ahead of the Grand Depart on August 29, as much of France went on red alert with the pandemic numbers rising, the French government requested that it also include support staff. Each team on this year’s trimmed down Tour was restricted to 30 members, but some arrived with as few as 25.Four members of the Lotto-Soudal team were sent home after two mechanics returned positive tests — the other two were their room-mates.The PCR test involves a famously queasy moment with a Q-tip inserted in each nostril and then twisted.”It’s uncomfortable, but necessary,” Astana’s Colombian captain Miguel Angel Lopez, known as one of the peloton’s toughest guys, told AFP with a smile.”We couldn’t have run all these races without all the precautions that have been put in place to protect us,” said the 26-year-old who was nicknamed ‘Superman’ in his homeland after fighting off three roadside thugs who foolishly tried to steal his bike when he was a teenager. “The final team has now been tested and these tests have now been sent to a laboratory in Paris for analysis,” a member of staff at the center told AFP.”The results will first be communicated to the team doctors, who must then pass those results on to the International Cycling Union.”They in turn will inform the Tour organizers,” the official said.The results will be announced officially on Tuesday morning ahead of stage 10, although teams may leak those results ahead of time. Topics :last_img read more

Man City at crossroads as Guardiola faces up to the future

Man City at crossroads as Guardiola faces up to the future

first_imgTopics : Manchester City head into the new campaign at something of a crossroads, having lost their Premier League crown and failed again in Europe under Pep Guardiola.They have the obvious task of trying to regain the upper hand over Liverpool domestically and finally unlocking the door to Champions League success after another quarter-final exit.But there is a much bigger and broader long-term challenge to be addressed as the wealthy club face some major decisions about what direction to take with the squad. Spaniard David Silva has left after a decade of delightful light-footed, advanced midfield play and club record scorer Sergio Aguero is moving into the final year of his deal and could also say goodbye to The Etihad at the end of the season.Even more significantly, Guardiola’s deal also runs out in June, 2021. City chief executive Khaldoon Al Mubarak says that situation will be resolved “naturally” but the lack of clarity means the club must decide on a real plan for the years ahead.The two signings so far in the transfer market indicate a move towards younger players for the future with 25-year-old Dutch defender Nathan Ake and 20-year-old Spanish winger Ferran Torres lowering the average age of the first team.Much is expected of home-grown midfielder Phil Foden, who is also 20 and likely to see more playing time with Silva gone.center_img The question is whether City can combine a gradual freshening up of their squad at the same time as they fight on the domestic and international front for trophies.There is certainly enough quality in the squad to secure a third title in four seasons — after they finished a massive 18 points adrift of champions Liverpool last term — with City’s attacking options looking particularly impressive.A fit-again Aguero will battle with Gabriel Jesus for the central striking role while Raheem Sterling. Riyad Mahrez, Bernardo Silva and Torres offer the wide options.Ake is likely to be joined by another center-half before the window closes as Guardiola looks to resolve a problem area given his evident lack of trust in John Stones and Nicolas Otamendi.The danger is that the longer the season progresses without Guardiola committing his future to the club, the more his contract situation will dominate the narrative around the team, with the danger that players sense the uncertainty.However long the Guardiola-era at City lasts, a matter entirely in the Catalan’s hands, this season is sure to bring plenty more exhibitions of his entertaining football philosophy. last_img read more

PREMIUMGovt injects $1.5b to save Jiwasraya amid controversies

PREMIUMGovt injects $1.5b to save Jiwasraya amid controversies

first_imgThe government and the House of Representatives have agreed to a Rp 22 trillion (US$1.49 billion) state capital injection to rescue ailing state-owned insurance company PT Asuransi Jiwasraya.State-owned insurance holding company PT Bahana Pembangunan Usaha Indonesia (BPUI) president director Robertus Biliteus said on Sunday the funds would be injected into BPUI in two tranches.“The government will inject Rp 12 trillion in 2021 and the remaining Rp 10 trillion in 2022, with the funds to be used to form a new state-owned life insurer, namely IFG Life,” he said during a virtual press briefing.All of Jiwasraya’s restructured policies would then be transferred to and settled and managed by IFG Life. The policies include Jiwasraya’s traditional and JS Saving Plan products, he said.Jiwasraya is embroiled in a corruption and money laundering case following… Topics : Log in with your social account Forgot Password ? Jiwasraya insurance-companies state-capital-injection PMN JS-Saving-Plan state-budget Google Facebook Linkedin LOG INDon’t have an account? Register herelast_img read more