BI places $500m at 5 foreign banks

BI places $500m at 5 foreign banks

JAKARTA (JP): Bank Indonesia has placed US$100 million at each
of five foreign banks as a guarantee for letters of credits
(L/Cs) issued by local state banks.

Bank Indonesia director of monetary and economic statistics,
Miranda S. Goeltom, said yesterday the five foreign banks were
ABN Amro, Standard Chartered, Bank of America, Citibank and
Deutsche Bank. They would all confirm locally issued L/Cs.

"We will soon sign bilateral agreements with Chase Manhattan
Bank, Hong Kong and Shanghai Banking Corp. and American Express
Bank for the same purposes," she said.

She said the central bank had issued directives on the
implementation of the guarantee to state banks on March 16. And
therefore, exporters wanting to import raw materials could now
open L/Cs with state banks. (rid)