JAKARTA (Oct 23): Indonesia's PT Bank Mandiri Tbk will raise its provisions to 18-20 trillion rupiah (US$1.4–US$1.5 billion) for 2016 from 11 trillion rupiah a year earlier, as bad loans spread beyond the commodities sector, its CEO told Reuters on Sunday. "In the next two, three, four quarters, our provisions would indeed be quite big," Wirjoatmodjo said on the sidelines of a Mandiri event. "For existing creditors who have a high level of debt, their cash flow is not enough yet to repay it." Indonesia's central bank on Thursday surprisingly cut its benchmark interest rate for a sixth time this year, in an effort to spur growth in Southeast Asia's biggest economy. Mandiri is also exploring acquisition opportunities in the Philippines and Myanmar, Wirjoatmodjo said, but declined to give more details.

Source: The Edge Markets October 24, 2016 03:00 UTC