Bank Credit Predicted To Grow 13 Percent In 2015

Jakarta (Antara Bali) - Bank Indonesia predicted that the country's bank credits would grow 11-13 percent in 2015 slowing from 15-17 percent last year.

Agus Martowardojo, the central bank governor said the implementation of government projects would contribute to credit expansion in the second half of this year.

The government began to disburse fund for its massive infrastructure projects in the second half of the year.

"We see it (the credit growth) was only 10-11 percent. We hope  in the second half of the year credits would expand when the budget fund has been disbursed. We don't expect as high as 15-17 percent, but only 11-13 percent," Agus said here on Friday night.

Based on data at the central bank in May, 2015, outstanding credits of banks in the country totaled Rp3,792.8 trillion or an increase of 10.3 percent  on-year - relatively stable compared with the previous month.

Liquidity growth in May was slower with money in circulation growing 13.4 percent year-on-year to Rp4,287.7 trillion slowing from a growth of 14.9 percent in April 2015 (yoy).

The slowdown was attributable to contraction of the government financial operation. In May 2015, the government's financial operation  contracted as reflected by the decline in the growth of government's net receivables from 32.9 percent  to 25.5 percent (yoy).

The interest rate on deposits and credits also declined slightly. In May 2015, the interest rate on one month, 3-months and 6-month deposits were 7.65 percent, 8.5 percent and 8.9 percent respectively, down from 7.96 percent, 8.59 percent and 8.98 percent in April.

The lending rates fell  from an average of 12.98 percent to 12.96 percent in May.  (WDY)