ABN sees better RI ventures

ABN sees better RI ventures

BRUSSELS (Reuters): Dutch bank ABN AMRO said on Monday it did not expect to have to make large additional provisions for its exposure in Indonesia despite the recent change of government in the Asian country.

Asked whether there would be fresh provisions in view of the new situation, Chairman Jan Kalff told reporters after a bankers' forum in Brussels, "Not all that much; at the moment, I think we have done enough."

In 1997, ABN AMRO set aside 500 million guilders for potential Asian loan losses, noting the crisis in Indonesia, in particular, where the Dutch bank is the oldest foreign bank, had given it cause for concern.

In February, ABN AMRO said outstanding in the corporate sector in Indonesia amounted to 1.7 billion guilders.

On the upside, Kalff said, Indonesians had in the face of the recent civil unrest been depositing their cash with foreign banks such as ABN AMRO, resulting in 1,000 new customers a week for the Dutch group.

This meant that ABN AMRO now had more rupiah income, which was reducing its foreign exchange risk on rupiah lending.