Jakarta – Airline issuers of state-owned companies PT Garuda Indonesia (Persero) Tbk. has pocketed standby letter of credit (SBLC) commitments worth a total of up to US $ 600 million from two banks, namely BNI and BRI.
Garuda Indonesia Finance and Risk Management Director Fuad Rizal said that the SBLC facilities obtained by the company from the two state-owned banks would provide space for the company’s tight balance sheet.
“With the SBLC we can withdraw the maintenance reserve funds from the lessor and be replaced with the facility. Later the SBLC will provide guarantees to the lessor for maintenance, “said Fuad, Thursday (10/25).
Fuad conveyed the standby credit facility would facilitate the company because before, the issuer with the GIAA code had to pay in installments on the lessor in accordance with the contract between the two.
“By implementing this scheme, GIAA will improve the structure of the balance sheet and increase liquidity, while bringing foreign exchange into the USD,” said Fuad. Meanwhile, the company pocketed SBLC commitments amounting to US $ 200 million from BRI and US $ 400 million from BNI.
Simultaneously with the implementation of the SBLC, Fuad said that the company also continued to renegotiate contracts for the extension of the lease period, while also obtaining a lower monthly rental fee.
Based on the company’s financial report, GIAA disbursed costs for aircraft maintenance or maintenance of US $ 208.6 million in the first half of 2018, or an increase of 9.9% compared to the same period of the previous year (yoy).
The portion of the GIAA maintenance expenditure reached 10% of the company’s total expense in the period. The company’s biggest expenditure is for fuel which reaches 30.3% and leasing, which is 24.54% of the total costs incurred by GIAA.