Mashill needs Rp 300b to meet CAR terms

Mashill needs Rp 300b to meet CAR terms

JAKARTA (JP): Bank Mashill will need Rp 300 billion in fresh
capital to meet the 4 percent capital adequacy ratio (CAR)
mandated by the government for all publicly listed banks by
March, its executives said on Wednesday.

Mashill president Dradjat Bagus Prasetyo disclosed to
reporters that his bank fell into the category which qualified it
for official assistance under the government's banking
recapitalization program.

During the press conference, Dradjat was initially reluctant
to disclose Mashill's CAR, but eventually relented and said the
ratio was approximately minus 15 percent.

The final figure must await the result of the diligence report
prepared by foreign auditors, he added.

Banks with CAR of between minus 25 percent and 4 percent
qualify for the recapitalization program. The CAR compares the
bank's equity capital with its risk-weighted assets.

Under the program, the government would provide 80 percent of
the funding through the issuance of bonds and the remaining 20
percent would have to be raised by existing shareholders of the
banks concerned.

Dradjat said Mashill hoped to meet its 20 percent obligation
through right issues.

Another Mashill director, Maruba Sihaloho, said the
recapitalization process would be completed before the March 31
deadline.

Maruba said the merger process with PT Jayabank International,
PT Bank Ciputra, and PT Bank Artamedia would also be completed by
March.

"In this merger Mashill will be the surviving bank," he said,
saying the new bank will retain the name Mashill. (02)