Lehman Brothers and JP Morgan named IBRA's financial advisors
Lehman Brothers and JP Morgan named IBRA's financial advisors
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
has named Lehman Brothers and JP Morgan as its international
financial advisors to help rehabilitate the country's beleaguered
banking sector.
IBRA has also selected Deutsche Bank AG as financial adviser
for six unlisted state banks -- Bank Rakyat Indonesia, Bank
Dagang Negara, Bank Tabungan Negara, Bank Bumi Daya, Bank Ekspor
Impor Indonesia and Bank Pembangunan Indonesia.
The agency said in a statement late Thursday that the
investment banks were selected from seven leading banks which
submitted detailed proposals on a thorough review of the key
issues facing the Indonesian banking sector, specific analysis
and recommendations for restructuring the sector.
It said it had invited 10 leading investment banks but only
seven of them showed interest and presented their proposals.
The seven banks gave presentations about their proposals
before representatives from IBRA, Bank Indonesia, the Ministry of
Finance, the World Bank and the International Monetary Fund.
IBRA's vice chairman Farid Harianto said the selected banks
had presented "qualified and comprehensive proposals which
contain the best qualifications in assets restructuring and
sales".
"Besides, they also show their consistent commitment to
Indonesia and our economic development."
IBRA's chairman said after the selection of financial advisors
that his agency would expedite the restructuring process of banks
under its supervision so that it would give certainty and
fairness to depositors, creditors and shareholders alike.
"After consulting with our advisors, IBRA's next important
moves would include the restructuring and selling of six banks
which have been taken over, detailed plans on assets sales and
the securitization of seven suspended banks and overall strategy
of banking restructuring and funding," Glenn said.
The six banks are Bank Danamon, Bank Dagang Nasional
Indonesia, Bank Umum Nasional, Bank Modern, Bank Tiara Asia and
Bank PDFCI.
Under the most recent agreement with the IMF, the government
has agreed to either "freeze, merge, recapitalize, or liquidate"
the six banks, starting mid-July.
The seven suspended banks are Bank Kredit Asia, Bank Pelita,
Bank Subentra, Bank Surya, Centris International Bank, Deka Bank
and Hokindo Bank.
IBRA was established in January to supervise the restructuring
of the country's troubled banks ridden with hefty bad loans and
to manage the deposit guarantee plan.
The cleanup of the sector is to involve potential domestic
mergers, acquisitions by strategic foreign partners, disposal of
nonperforming assets and a recapitalization program.
"IBRA has received proposals from strategic foreign partners
with international reputation and domestic banks which are
interested in recapitalization, acquisition and mergers with
banks under IBRA," the agency said.
The agency said Minister of Finance Bambang Subianto supported
all of its efforts to revamp the ailing banking sector.
"The rehabilitation of the financial sector is an important
component of the government's efforts to restructure and
rehabilitate the economy and IBRA's existence contributes greatly
to the process," Bambang said.
"That's why the government supports IBRA's moves to ensure
that the process proceeds in the most effective and efficient way
for the sake of the restoration of confidence which is very
important to our economy." (rid)