Bank Mandiri $27b in assets

JAKARTA (JP): Newly established Bank Mandiri will have total assets of Rp 230 trillion (about US$27 billion) in July following completion of the merger of four troubled state banks, according to its president Robby Djohan.

He said on Tuesday the total would include bonds to be injected by the government through the recapitalization program.

Robby spoke to the media following a meeting with President B.J. Habibie.

Bank Mandiri was established last year to acquire the assets and liabilities of Bank Bumi Daya, Bank Pembangunan Indonesia, Bank Dagang Negara and Bank Ekspor Impor Indonesia.

Liabilities of the four banks will be transferred to the asset management unit of the Indonesian Bank Restructuring Agency, and in exchange the government will injected bonds into Bank Mandiri.

Bank Mandiri is expected to kick start financing for the country's cash-strapped real sector.(rei/prb)