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Garuda Delays Debt Repayments to Creditors

Lower Loads after the Bali Bombing Puts Garuda in a Cash Crunch.

(12/12/2005) Indonesian flag-carrier Garuda Indonesia has bee successful in its effort to reschedule an US$50 million principal repayment due at the end of 2005 to its creditors group -European Credit Agencies (ECA).

The agreement to delay principal payments and only pay ongoing interest charges was announced by the President Director of Garuda Indonesia, Emirsyah Satar, on Wednesday, December 7, 2005.

The latest rescheduling is part of efforts by the Airline to restructure debt amounting to US$150 million and Euro 800 million owed to ECA.

Meanwhile, Emirsyah is still optimistic that Garuda's total losses for 2005 will be less than the Rp. 811 billion (approximately US$81.1 million) suffered in 2004.

Prior to the most recent rescheduling of debt, Garuda had debt repayments burdens amounting to US$115 million per year with estimated annual operating costs amounting to another US$1 billion.