JAKARTA, Aug 24 (Reuters) - Indonesia's beleaguered Bank Internasional Indonesia (BII) is ready to pay off a $77 million loan to foreign creditors. ``(The money) is due on August 28 and will be paid soon. We have prepared the money,'' Halim Sutantio, a member of a government-appointed management team at the country's fifth largest bank, said on Friday. The loan repayment was part of debt restructuring deals agreed in late 1990s owed by Indonesian banks to foreign creditors which would be exchanged with tradable government-backed paper maturing by 2005. The cash-strapped government recapitalised BII in the wake of the Asian financial crisis in the late 1990s and later the bank was burdened by $1.3 billion in debts owed by its former controlling shareholder, the Sinar Mas Group. The giant and heavily-indebted group is now restructuring a massive $12.2 billion in debt at a key unit, Asia Pulp & Paper (APP) (NYSE:PAP - news), raising concerns it would struggle to cover its obligations to BII. Earlier this year the government agreed to guarantee the Sinar Mas debts and now is considering giving BII so-called recycled bonds to replace the loans. ``We have not received the bonds or the interest payment,'' Halim said. Separately, IBRA chief I Putu Gde Ary Suta said on Friday the $48 million interest payment, earlier reported to be valued at $65 million, was still awaiting finance ministry approval. ``The interest (payment) of $48 million due on July 31 is waiting for approval from the finance ministry,'' he said. The payment was previously due on June 30 and had been extended to July 31. A government official said the recycled bonds -- recapitalisation bonds that have been returned to the government by banks which no longer need them -- would hopefully be given to BII by the end of the month. But the decision would need the approval of new state enterprises minister Laksamana Sukardi, the official said.