Bank delays bond issue

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)