Bank Muamalat sues IBRA

Bank Muamalat sues IBRA

JAKARTA (AFX-ASIA): Bank Muamalat has filed a civil suit with the South Jakarta District Court against the Indonesian Bank Restructuring Agency (IBRA) and Bank Tiara Asia for an alleged unpaid debt of Rp 25.4 billion (about US$2.9 million) which it claims to have matured in February 1999, prosecution lawyer Artidjo Alkostar said.

He said IBRA, which took over Bank Tiara's debt in August 1998 under a government-sponsored restructuring plan, failed to fully settle the latter's debt to Bank Muamalat.

"Of Bank Tiara's total Rp 108.2 billion debt to Bank Muamalat, IBRA has only repaid Rp 82.8 billion, leaving the remaining Rp 25.4 billion still unpaid," the lawyer noted.

Bank Muamalat has asked the court to issue a sequestration order on IBRA's and Bank Tiara's main office building in Jakarta until the debt is paid, plus a Rp 10 billion penalty.