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BTN to Cut Lending Rates To Remain Competitive
June 15, 2009

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The country’s largest mortgage loan provider, PT Bank Tabungan Negara, is to reduce its lending rates for all new loans by an average of 0.5 and 2 percentage points starting on July 1, thanks to the improving macroeconomic situation, the bank said in a statement on Monday.

“The cut in lending rates is part of BTN’s commitment to adjusting rates in line with the bank’s capacity and conditions in the market,” said Iqbal Latanro, BTN’s president director. Commercial banks usually charge different rates on consumer, working capital and investment loans.

“With our policy of lower lending rates, we expect we will be better able to compete with other banks,” Iqbal said. “BTN also expects the lower interest rates to help stimulate the housing market.” JG




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