Tirtamas to settle debt

JAKARTA (JP): The widely-diversified Tirtamas Group has agreed to provide a Rp 1.6 trillion guarantee as a requirement for the recapitalization of its affiliate Bank Papan Sejahtera.

PT Harawi Sekawan, Bank Papan's new majority shareholder, said in a statement that the guarantee also covered all of Tirtamas' obligations to the bank.

Harawi, a business unit of the country's largest Muslim group Nahdlatul Ulama, said it had signed an agreement with Bank Papan and PT Tunasmas Paduarta of the Tirtamas Group on the bank's recapitalization program.

The bank would then hold an extraordinary shareholders meeting on Thursday to get minority shareholders' approval of the recapitalization plan.

Bank Papan is still under the supervision of the Indonesian Bank Restructuring Agency after it used government liquidity support amounting to more than 200 percent of its capital. (gis)