IBRA approves interbank claims on closed banks
IBRA approves interbank claims on closed banks
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
has decided that 34 interbank claims on banks closed by the
government last year totaling Rp 1 trillion and US$32.8 million
are eligible for the government guarantee program.
The agency's deputy chairman, Jerry Ng, said on Tuesday
another 25 claims worth Rp 126 billion and $39 million were still
in a process of verification by international auditor Ernst &
Young.
Speaking at a media briefing, he said the payment of eligible
claims would be made later this month after completing the
verification of remaining claims.
The government closed 38 banks in March 1999 as part of
efforts to restructure and clean up the country's banking
industry.
The government covers all the obligations of the closed banks,
including interbank claims, in a bid to prevent a widespread
collapse of the banking system amid low confidence in the
industry.
But IBRA decided to halt the payment of interbank claims
following the outbreak of the high-profile Bank Bali scandal in
the middle of last year.
The scandal revolved around the transfer of a commission fee
from the bank to a private firm linked to the Golkar Party for
its service in helping Bank Bali recover its interbank claims
from IBRA.
IBRA then decided to verify interbank claims to make sure they
were eligible to be covered by the blanket guarantee program.
But many bankers criticize IBRA for being too slow with the
verification process. The banks need the cash to improve their
liquidity and capital condition.
Jerry said there were a total of 216 interbank claims worth Rp
6.3 trillion and $466 million handled by IBRA, a unit of the
finance ministry.
He said the agency had so far paid 11 claims totaling Rp 1
trillion and $20 million.
He said 63 claims worth Rp 2.62 trillion and $72.7 million
were not eligible to be covered by the program.
He added that some 83 claims were taken out of the 216 claims
because they were settled "bilaterally".
Astra
Separately, IBRA deputy chairman Mahmuddin Yassin said the
agency would announce on Wednesday three consortium which would
compete for its 45 percent stake in publicly listed automotive
giant PT Astra International.
"They will submit their final bids on March 23, and we'll
choose the winner on March 25," he told reporters on the
sidelines of a hearing between the finance minister and House of
Representatives Commission IX for financial and development
planning affairs.
Mahmuddin declined to name the three consortium.
A U.S. consortium led by Newbridge Capital and Gilbert Global
Equity had attempted to buy IBRA's stake in Astra. But the
preferred bidder failed to pay a necessary up-front fee by the
set deadline.
Several high-profile investors, including George Soros,
Singapore's Cycle & Carriege Ltd. and Lazard Freres & Co., were
said to be interested in buying the Astra stake.
IBRA plans to raise about Rp 3 trillion in cash from the Astra
sale. The agency has targeted to raise a total of Rp 17 trillion
in the current fiscal year ending March 31 to help finance the
government bank restructuring and recapitalization program.
The agency has so far raised about Rp 12 trillion. IBRA is
also planning to launch an initial public offering of Bank
Central Asia (BCA) in a bid to raise another Rp 3 trillion next
month. (rei)