L. Joseph
Phone:(202) 473-7700
Fax:(202) 974-4384
E-mail:ljoseph@ifc.org



WASHINGTON, D.C., February 18, 1999 – -- The International Finance Corporation recently put together one of the first corporate restructuring agreements in Indonesia since the beginning of the financial crisis for P.T. Hotel Santika Nusajaya, which owns and operates a 4-star hotel in central Jakarta.  The financial restructuring will help Hotel Santika Jakarta to recover from the crisis with improved debt servicing capability.

Sami Haddad, IFC Associate Director for South and Southeast Asia, said that the restructuring would strengthen the company's financial position, enabling it to better withstand the current economic crisis and lead the way to similar restructurings of other sound companies -- a key to the recovery of Indonesia's corporate sector.

Santika is owned by P.T. Grahawita Santika (Grahawita), an Indonesian chain established in 1981 that also owns and operates eight other hotels in Indonesia.

Other creditors are Deutsche Investitions und Entwicklungsellschaft mbH (DEG) of Germany, the Netherlands Development Finance Company (FMO), and Asian Finance and Investment Corporation (AFIC).

IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.