Negative Spread
Catch-22 of High Interest Rates
Tuesday, July 24, 2001
It seems that the interest rate on Bank Indonesia Certificates is likely to rise. Banks therefore now face two threats: negative interest income and non-performing loans.
arsip tempo : 178039438680.
DURING the run-up to the Plenary Session of the Peoples' Consultative Council (MPR), the rupiah exchange rate has strengthened, rising almost 1 percent on Saturday last week. Syahril Sabirin, the Bank Indonesia governor, explained last Friday that BI had not yet raised interest rates again for this reason. At that time, Syahril also signaled that the current tight money policy would not be continued in the long term because of the adverse eff
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