LPS : MUTIARA NOW HEALTHY BANK

Jakarta, Jan 19 (ANTARA) - The board commissioner of the Deposit Insurance Agency (LPS), Rudjito, said Bank Mutiara Bank which was formerly the Bank Century had now become a heatlhy bank.

"The program of making the bank healthy is still continuing," he said replying a question from a member of the House committee inquiring the bank's controvesial bailout at a hearing on Tuesday.

"Compared to November 20, the Mutiara Bank in December lost Rp7.5 trillion but in 2009 it made a profit of Rp259 billion with an initial equity of minus Rp6.6 trillion but now already turning positive at Rp452 billion," he said.

He said right now the bank's capital adequacy ratio reached 10.4 percent with a minimum reserve requirement of five percent.

The Mutiara Bank, whose majority shares or 99.6 percent of its shares are held by the LPS, has sought new customers under new management.

"The Mutiara Bank will maintain the old customers and seek new customers both depositors and debtors to boost its performance and increase its capital," he said.

Rudjito said this year the bank targeted a profit of Rp350 billion.

LPS chief executive Firdaus Djaelani meanwhile said in line with the law on temporary capital participation the bank would return the bailout funds it had received in the next three years.

"If the bank could not as yet be sold in the period LPS will be given two more years to accomplish it. However if the bank remains unsold within the period it will be released at the best price possible," he said.

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