KL names troubled banks

KL names troubled banks

KUALA LUMPUR (Dow Jones): Malaysia's Finance Minister Anwar
Ibrahim said yesterday a number of commercial banks have been
identified as needing help from the central bank's newly
announced recapitalization fund.

Although he didn't name the banks involved, he said 2.5
billion to 3.5 billion ringgit would be needed in the next few
weeks.

"We are talking in terms of a 16 billion ringgit program," for
the whole banking sector, Anwar said. "What we will require
immediately is 2.5 billion ringgit to 3.5 billion ringgit, just
to go on for the next few weeks."

The recapitalization fund, known locally as Danamodal, is run
by Bank Negara Malaysia, but is designed to be largely funded by
private and overseas institutions, including multilateral
agencies like the World Bank and Asia Development Bank.

Danamodal will buy strategic stakes in the banks and then
force them to merge to create stronger institutions.