Bira joins govt's plan

JAKARTA (JP): Publicly-listed Bank Bira, currently under the control of the Indonesian Bank Restructuring Agency, has confirmed that it would participate in the government's recapitalization program.

The bank said earlier this week that owners and directors had agreed to meet the central bank's requirements in order to qualify for the recapitalization program.

"We are pleased with the results of the due diligence report, and the "B" categorization is a sign of our commitment to our shareholders and depositors alike," Bank Bira president's said.

Banks in the "B" category have a capital adequacy ratio of between 4 percent and minus 25 percent.

The bank, however, did not specify the exact ratio of its capital to its assets.

The bank is due to submit its business plan to Bank Indonesia by Feb. 12. Upon the approval of the business plan, the bank will sign a stand-by purchase agreement with the government to begin the recapitalization program. (02)