Bank Global repayments to start next month
The Jakarta Post, Jakarta
The government will start repaying depositors of the recently closed Bank Global in the first week of February in accordance with its blanket guarantee program.
In a public announcement, the Ministry of Finance's bank guarantee implementation unit (UP3) head Isa Rahmatawarta vowed that all depositors would be honored under the guarantee program covering Bank Global.
Under the blanket guarantee program, depositors can claim their repayment at the branches of designated banks by filling out an application form accompanied by bank books and other official documents from the closed bank.
The UP3 will then verify all documentation before releasing repayment.
Bank Indonesia (BI) suspended Bank Global for a month on Dec. 13 because of its severely weakened financial condition from fictitious lending, subordinate bonds and other alleged banking fraud.
At the time of suspension, Bank Global's capital adequacy ratio (CAR) stood at minus 39 percent against the minimum CAR requirement of 8 percent as set by BI.
The central bank closed Global on Thursday, Jan. 13, after its management failed to improve the bank's financial condition.
BI said Bank Global's third-party liabilities amounted to Rp 759 billion (US$84.3 million), of which Rp 723 billion was in time deposits and Rp 36 billion in savings accounts.
Dozens of depositors, however, have questioned BI's assessment of Bank Global's liabilities. Some 50 depositors went to the Bank Global central branch on Friday, claiming that their savings at the bank reached some Rp 200 billion alone.
The government is likely to cover losses of up to Rp 300 billion, as Bank Global has Rp 400 billion in assets and only Rp 30 billion in cash reserves.
The Jakarta Stock Exchange (JSX) is to delist Bank Global shares from the bourse immediately following its closure by the central bank.
JSX listing manager Wan Wei Yiong said the measure would be taken as soon as it was approved on Monday by the JSX listing committee.