Bakrie's banks to merge

Bakrie's banks to merge

JAKARTA (JP): Four private banks under the Bakrie Group, Bank
Nasional, Bank Nusa International, Bank Angkasa and Bank Nasional
Komersial, are set to merge soon.

Chief commissioner of PT Bakrie Capital Indonesia Nirwan D.
Bakrie said the planned merger had received the endorsement of
Minister of Finance Fuad Bawazier. The company is the holding
firm for the four banks.

"We expect that the merger will be completed faster than
previously scheduled,' Nirwan said, adding that it would be named
Bank Nusa Nasional.

He said the combined paid-up capital of the banks was expected
to exceed the minimum capital requirement set by the government
this year.

Commercial banks are required to have minimum capital of Rp 1
trillion (US$125 million) by the end of 1998, Rp 2 trillion by
2000 and Rp 3 trillion by 2003.

Under a recently announced regulation, however, "sound" banks
-- those which have cleared their nonperforming loans -- will be
allowed to operate with paid-up capital of Rp 250 billion by the
end of this year. (aly)