Bank delays bond issue

JAKARTA (JP): Publicly listed Bank Bali has postponed its plan to float bonds, saying that borrowing on the financial market is cheaper.

"As the national banks are currently very liquid, getting funds from the money market will be cheaper than floating bonds," Bank Bali's President Rudy Ramli said yesterday.

Speaking to reporters after a shareholders' meeting, Rudy predicted the trend will continue until the end of this year.

He said that until recently the money market offered only short-term loans with a maturity date of less than one year.

"Now, as they are awash with funds, they offer up to two-year term loans," he said.

The bank's shareholders approved a final dividend of Rp 100 (4.3 U.S. cents) a share. The total 1995 dividend payout will amount to Rp 200 a share.

Bank Bali, one of Indonesia's largest private banks, recorded a net profit of Rp 96.09 billion in 1995, an increase of 27.4 percent from Rp 75.44 billion in 1994. (13)