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.