Deutsche Bank prepared for the worst in Indonesia<\/p>\n
FRANKFURT (Reuters): The head of Germany's largest bank said
\non Wednesday that the situation in Indonesia had worsened
\nsignificantly since the end of 1997, when it made a large risk
\nprovision to cover its exposure to the Asian crisis and it was
\nnow prepared for the worst.<\/p>\n
Rolf Breuer, chief executive of Deutsche Bank AG said \"We
\ncan't make forecasts in the current chaotic crisis situation (in
\nIndonesia) but we are prepared for the worst,\"<\/p>\n
Deutsche announced last week it had evacuated its staff in
\nIndonesia to Singapore and closed its operations there.<\/p>\n
\"We still believe in Asia overall, but we don't believe the
\nTiger economies will be able to return to their former economic
\ngrowth rates in the next two or three years,\" Breuer told
\nshareholders at the bank's annual shareholders meeting.<\/p>\n
Breuer noted that Deutsche's industrial clients were on the
\nlookout for acquisition opportunities and joint ventures in Asia
\nbut that Deutsche's own strategy there was one of consolidation.<\/p>\n
The bank co-chairs the steering committee of Indonesia's bank
\ncreditors and will host the next round of talks on rescheduling
\nIndonesia's $80 billion private sector debt in Frankfurt in the
\nfirst week of June.<\/p>\n
Deutsche last year set aside a total of 1.4 billion marks
\n($788 million)in additional risk provisions to cover its exposure
\nto the Asian crisis.<\/p>\n
\"Now, after half a year, we cannot sound the all-clear and we
\nare extremely worried,\" Breuer said. Thailand and Malaysia had
\nmade progress and Korea had found a solution to its financial
\ncrisis but the situation in Indonesia had worsened, Breuer said.<\/p>",
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