Bapindo regains confidence after scandal: Mar'ie<\/p>\n
JAKARTA (JP): Minister of Finance Mar'ie Muhammad says the
\nscandal-hit Bank Pembangunan Indonesia (Bapindo) has recovered
\nbusiness confidence after a series of financial and management
\nremedies.<\/p>\n
\"The heavy bleeding at the wounded bank has already stopped
\nand we are now trying to remedy it,\" Mar'ie told members of the
\nHouse of Representatives (DPR) in a hearing yesterday.<\/p>\n
He told the hearing, which attracted over 50 journalists, that
\nthe monetary authority is now involved in improving the bank's
\nmanagement in cooperation with foreign banking agencies.<\/p>\n
Bapindo lost somewhere over Rp 1.3 trillion (US$600 million)
\nin a series of highly questionable loans made to businessman Eddy
\nTansil. Collusion between executives of the bank and Tansil's
\nGolden Key Group has been alleged.<\/p>\n
Mar'ie said the authority has introduced a restructuring
\nscheme to improve Bapindo's finances.<\/p>\n
He said that the government has allowed Bapindo to forego
\npaying interest on its government loans, reducing the troubled
\nbank's debt burden.<\/p>\n
Bank Indonesia has also lowered the interest rate on its
\nliquidity credits to Bapindo, he added.<\/p>\n
\"If the converted funds are still insufficient, the authority
\nwill likely sell Bapindo's certificates and various bonds to
\ngenerate funds for the payment of its obligations,\" he said.
\n\"Some of the bank's assets can also be sold to tackle its debts.\"<\/p>\n
Optimism<\/p>\n
The minister said he was optimistic that the capitalization
\nscheme will be enough to help improve the bank's financial
\nconditions.<\/p>\n
\"And, you see, the government never asks any financial
\nassistance from private sector parties or inject fresh money from
\nits budget to help the bank,\" he said.<\/p>\n
To improve the bank's portfolio, Mar'ie said that the
\nauthority also has summoned the bank's 50 biggest borrowers and
\nasked them to make reports on the utilization of the funds
\nprovided by Bapindo and, if necessary, reduce their outstanding
\nborrowing.<\/p>\n
\"I honestly say that I have summoned and interviewed them one
\nby one to have their support for the settlement of the bank's
\nfinancial fiasco,\" he said, adding that some of them are
\ncommitted to reducing their outstanding credits soon.<\/p>\n
He said cooperation between the borrowers and the management
\nof Bapindo has in fact helped ease the settlement of the tragedy
\nat the bank.<\/p>\n
To maintain confidence of foreigners over the country's
\nbanking services, he said that the government has given priority
\nto paying all the Bapindo credits which have reached maturity.<\/p>\n
Tracing<\/p>\n
Mar'ie said that the authority is also tracing all assets and
\ninvestments which were put by executives of the scandal-hit
\nGolden Key Group at any business activities overseas.<\/p>\n
\"We have appointed Kroll, an investigating agency of the
\nUnited States, to help trace all the group's funds and assets
\nabroad,\" he said, adding that the agreement on the tracing
\nservices was signed here last month.<\/p>\n
He conceded that the tracing was not so easy, considering that
\nthe activities should deal with various banking rules of foreign
\ncountries.<\/p>\n
\"But I hope that by the middle of this month, the second phase
\nof the tracing, including the identification of the countries
\nwhere Golden Key has made investment and the amount of its assets
\nand investments will be soon reported to us,\" he said.<\/p>\n
The minister said that the authority is also now negotiating
\nwith five prominent foreign banks which will provide technical
\nassistance for Bapindo.<\/p>\n
\"Early next month, I hope the negotiations will be finalized,\"
\nhe said.<\/p>\n
Mar'ie said the foreign banks will train the personnel of the
\nbank as to how to manage and supervise its activities.<\/p>\n
\"In the future, we plan to set up a center of banking services
\nand consultancy for state banks,\" he said.<\/p>\n
He said foreign professionals actually have praised the
\ngovernment's measure to cope with the banking scandal.<\/p>\n
The current management of Bapindo, therefore, has no
\ndifficulty to make letters of credit with foreign banks and
\nbeneficiaries overseas, he said.<\/p>\n
He said that on June 3, Bapindo also obtained a transferable
\nterm loan of US$50 million from Arab Bank Plc. in Singapore.<\/p>\n
The loan, with a maturity of two years and interest rate of
\n1.2 percent above the Singapore Interbank Offered Rate, will be
\nused as working capital in Bapindo's branch office in Hong Kong.<\/p>\n
Bapindo yesterday also reported a 54 percent increase in its
\nafter-tax profit to Rp 33.62 billion last year from Rp 21.82
\nbillion in 1992. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bapindo-regains-confidence-after-scandal-marie-1447893297",
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