Good Intentions, Bad Debts - Opinion - magz.tempo.co

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Good Intentions, Bad Debts

Tuesday, November 6, 2007

The government wants to take over SOEs' bad debts. This is not a wise move.

. tempo : 173234821025.

THE government must not act like a trash can for debts. Bad debts resulting from foreign subsidiary loan agreements (SLA) and investment fund accounts (RDI) at several state-owned enterprises should not be taken over, let alone canceled. This will only add to the government's burden.

These investment fund accounts and SLAs are foreign debts passed on to state companies. This practice used to be a common way of assisting government programs. For exa

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