Troubled Bank Putera put under IBRA management<\/p>\n
JAKARTA (JP): Bank Indonesia put the management of Bank Putera
\nMultikarsa under the Indonesian Bank Restructuring Agency (IBRA)
\non Saturday after the bank's owners failed to raise the funds to
\nsettle the bank's negative account at the central bank.<\/p>\n
IBRA said in a statement the move was immediately followed by
\nthe appointment of a new management team for the bank.<\/p>\n
\"On Dec. 11, 1999, IBRA received PT Bank Putera Multikarsa
\nfrom the governor of Bank Indonesia,\" the agency said, but adding
\nthat the move was not a takeover but simply a contingency measure
\nto allow the bank to solve its temporary liquidity crunch.<\/p>\n
IBRA said the new management team consisted of people
\nappointed by the agency and several members from the previous
\nmanagement team.<\/p>\n
The agency said the transfer of the bank was in accordance
\nwith the government's blanket guarantee program on deposits.<\/p>\n
Bank Putera's clearing activities were suspended by the
\ncentral bank on Dec. 7 after it suffered a negative balance with
\nBank Indonesia amounting to Rp 278.5 billion following a run on
\nthe bank.<\/p>\n
The run amounted to Rp 592.3 billion, drying up the bank's
\nreserves at the central bank and putting its account in Bank
\nIndonesia in negative territory.<\/p>\n
The run on the bank was prompted by a report on the Internet
\nthat the bank would be taken over by IBRA in the wake of the
\nrevelation of 'politically-directed loans' for Bank Putera's
\nparent company, the Texmaco Group.<\/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 total third party rupiah funds the bank
\nreceives.<\/p>\n
For third party funds in a foreign currency, each bank must
\nmaintain a reserve requirement of 3.5 percent at the central
\nbank.<\/p>\n
IBRA said that before being allowed to resume its clearing
\nactivities, Bank Putera would be audited by Bank Indonesia and
\nthe agency.<\/p>\n
The agency said Bank Putera would continue normal operations,
\nalthough its clearing activities would remain suspended until the
\ncompletion of the audit.<\/p>\n
IBRA said depositors could make transactions at Bank Putera,
\nincluding withdrawing their money from the bank, beginning on
\nDec. 15.<\/p>\n
\"On Tuesday and Wednesday the management team will work on the
\nverification process, which is expected to be completed in two
\ndays,\" IBRA said.<\/p>\n
\"Depositors don't have to rush to get their money because all
\ndeposits are fully guaranteed by the government,\" the agency
\nadded.<\/p>\n
The government launched the blanket guarantee program early
\nlast year amid plunging confidence in the country's banking
\nsector. Under the program, the government guarantees all deposits
\nat closed banks.<\/p>\n
Bank Indonesia's Governor Sjahril Sabirin asserted earlier on
\nFriday that Bank Putera suffered only a temporary liquidity
\ncrisis due to the massive deposit run and the bank remained in
\nthe Category A or the group of banks with capital adequacy ratio
\nof more than 4 percent.<\/p>\n
\"As soon as the bank resolves its liquidity crunch it will be
\nreleased from IBRA direct supervision and management,\" Sjahril
\ntold reporters.<\/p>\n
Texmaco<\/p>\n
Bank Putera's parent company, textile and engineering giant
\nTexmaco Group, was hit by a controversy after State Minister of
\nInvestment and the Empowerment of State Enterprises Laksamana
\nSukardi revealed late last month that the group received loans
\ntotaling US$754.1 million and Rp 1.9 trillion through the
\npersonal intervention of former president Soeharto.<\/p>\n
The bulk of the funds came from state Bank Negara Indonesia
\n(BNI).<\/p>\n
The government later disclosed that Texmaco owed a total of Rp
\n15.9 trillion ($2.2 billion at the current rate) in over due
\nloans to Bank BNI and the other three state banks-- Bank Rakyat
\nIndonesia, Bank Mandiri and Bank Tabungan Negara-- as well as to
\nIBRA.<\/p>\n
Separately, President Abdurrahman Wahid said on Friday that
\nwhile the due process of law should proceed against Texmaco
\nowners, both bank BNI and Texmaco businesses should be helped to
\ncontinue normal operations.<\/p>\n
\"We should separate the owners from their businesses.
\nEntrepreneurs suspected of violating the law should be prosecuted
\nbut their business entities should be allowed to continue
\noperations, otherwise hundreds of thousands of workers will be
\nthrown out of their jobs,\" the President said.<\/p>\n
On the other hand, Bank BNI, which employs tens of thousands
\nworkers, should also be protected from bankruptcy, Abdurrahman
\nsaid, adding \"this is what I call a win-win solution.\"<\/p>\n
\"Texmaco should settle its debts to BNI, and I am glad to
\nlearn that they have so far made two debt installments,\" the
\nPresident said, pointing out Texmaco's capability to export
\ntextile and garments, machinery and trucks.<\/p>\n
Earlier last week, Finance Minister Bambang Sudibyo said the
\nfour state banks and IBRA had set up a lenders club to work out a
\nrestructuring package for the debts.<\/p>\n
Bambang assured, however, that the loans were adequately
\nsecured because Texmaco's total assets were estimated at Rp 23.25
\ntrillion, meaning that the group's loan-to-asset ratio was 68.7
\npercent. (rei\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/troubled-bank-putera-put-under-ibra-management-1447893297",
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