Bank Putera's future in IBRA's hands<\/p>\n
JAKARTA (JP): The fate of Bank Putera now lies in the hand of
\nthe Indonesian Bank Restructuring Agency (IBRA), with
\nrepresentatives of the two parties holding a close-door meeting
\non Thursday.<\/p>\n
No explanation was given on the results, but a reliable
\ngovernment source said the talks between IBRA and Bank Putera --
\nthe financial arm of the heavily indebted Texmaco Group -- failed
\nto produce a resolution.<\/p>\n
Bank Indonesia (BI) Deputy Governor Aulia Pohan confirmed the
\ntalks between IBRA and Bank Putera and said rescue measures would
\nbe taken soon.<\/p>\n
\"They are discussing what could be done with Bank Putera and
\nwhat legal procedures are available to be taken to save the
\nbank,\" Aulia said.<\/p>\n
Bank Putera faced liquidity problems after a run on Monday and
\nTuesday by its depositors following a weekend Internet media
\nreport that supervision of Bank Putera would be transferred to
\nIBRA. The report was denied by the bank's president Masyhud Ali.<\/p>\n
The run amounted to Rp 592.3 billion (US$82 million), drying
\nup the bank's reserves at Bank Indonesia on Tuesday and putting
\nits account in the central bank in the negative position. It
\nprompted the central bank to temporarily suspend the clearing
\nactivities of Bank Putera.<\/p>\n
\"We had to suspend the clearing activities of Bank Putera when
\nthe bank's reserve requirement hit minus Rp 278.5 billion on
\nTuesday,\" Aulia said.<\/p>\n
All banks operating in Indonesia must have a deposit account,
\nalso known as a reserve requirement, at the central bank in the
\namount of 5 percent of the total third party rupiah funds the
\nbank receives, according to a central bank regulation.<\/p>\n
For the third party's funds in foreign exchange, each bank has
\nto maintain a reserve requirement of 3.5 percent at the central
\nbank.<\/p>\n
Aulia said the central bank would not lift the clearing
\nsuspension until Bank Putera provided the required Rp 278.5
\nbillion to fix its negative account.<\/p>\n
However, Aulia said Bank Putera had interbank receivables
\ntotaling Rp 342 billion at three closed banks: Bank Uppindo, Bank
\nAspac and Bank Papan Sejahtera.<\/p>\n
\"Bank Putera's account in the central bank could turn into
\npositive again if it could recover these receivables from IBRA,\"
\nhe said.<\/p>\n
Under the government blanket guarantee program, all
\nobligations of closed banks, including interbank claims, are
\nguaranteed by IBRA.<\/p>\n
But the agency suspended the payment of interbank claims owed
\nby closed banks after the high-profile Bank Bali scandal.<\/p>\n
IBRA is auditing the remaining unpaid interbank claims to
\nprove that they are eligible to be included in the guarantee
\nscheme.<\/p>\n
Bank Putera's total assets as of November 1999 stood at Rp 2.9
\ntrillion with net equity of Rp 440 billion.<\/p>\n
The medium-size bank was relatively untouched by the country's
\nworst banking crisis. The bank has a capital adequacy ratio of
\nmore than 4 percent, which frees it from the government-sponsored
\nbank recapitalization program.<\/p>\n
The government has so far closed 66 banks, nationalized 11 and
\nrecapitalized eight. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-puteras-future-in-ibras-hands-1447893297",
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"sponsor": "Okusi Associates",
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