BNI gets government bonds

BNI gets government bonds

JAKARTA (JP): Bank Negara Indonesia (BNI) has signed a
management contract with the Ministry of Finance, paving the way
for the publicly listed bank to join the government-sponsored
recapitalization program.

BNI's corporate secretary, Sudirman, said on Saturday that
under the contract signed on Friday, the bank would receive bonds
worth Rp 61.8 trillion from the government to lift its capital
adequacy ratio (CAR) to the minimum level of 4 percent.

About Rp 30 trillion of the total bonds would be issued this
month, while the remaining Rp 31.8 trillion worth of bonds would
be issued by June 30.

BNI, one of several major banks joining the recapitalization
program, must follow strict management guidelines set by the
government as part of the management contract agreement. (07)