Mashill to boost capital<\/p>\n
JAKARTA (JP): Publicly listed Bank Mashill will issue rights
\nshares next month to partly finance its recapitalization program,
\nthe bank said on Thursday.<\/p>\n
It announced it was also seeking new investors to meet the
\nminimum capital requirement set by Bank Indonesia.<\/p>\n
\"Our prospective foreign investor has appointed its financial
\nadvisor to negotiate with us,\" Mashill president Dradjat Bagus
\nPrasetyo said.<\/p>\n
Bank Mashill announced in mid January it was ranked in the \"B\"
\ncategory by Bank Indonesia, making it eligible to join the
\ngovernment's recapitalization program.<\/p>\n
\"B\" category banks are recapitalized under an arrangement in
\nwhich the government provides 80 percent of needed
\nrecapitalization funds through issuance of bonds. The remainder
\nmust be provided by the owners or invited domestic or foreign
\ninvestors.<\/p>\n
Banks in the \"B\" category are those whose CAR level -- the
\nratio between equity and risk-weighted assets -- falls between 4
\npercent and minus 25 percent. Banks with CAR level above 4
\npercent are placed in the \"A\" category, considered as sound.<\/p>\n
Banks with a CAR level below minus 25 percent are put in the
\n\"C\" category, and may face liquidation if their owners are unable
\nto inject cash to upgrade the condition. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mashill-to-boost-capital-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}