ID :
62092
Sun, 05/24/2009 - 06:12
Auther :
Shortlink :
https://www.oananews.org//node/62092
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BANK CENTURY GETS RP6.2 TRILLION IN BAIL-OUT FUNDS
Jakarta, May 23 (ANTARA) - The chief executive of the Deposit Guarantee Agency (LPS), Firdaus Djaelani, said LPS had injected Rp6.2 trillion into Bank Century.
"According to LPS financial reports, by December 2008 LPS injected up to Rp4.9 trillion and from then on until now it had injected Rp1.1 trillion so that altogether it had put Rp6.2 trillion into the bank," he said at a familiarization of the bill on financial system safety net at Putri Duyung Cottage here on Saturday.
He said the government had decided to bail out Bank Century because the bank's problem could have a systemic effect on other financial services.
"Bank Century has been saved, according to the management's report. It made a profit in March 2009 and it is hoped it will also make a profit in April," he said.
He said Bank Century's financial statement was now still being audited and the process was expected to be finished soon and after coordinating with the central bank and the finance ministry the result of the audit would be made known to the public.
"Thank God, Bank Century is now healthy. Admittedly, its liquidity is still marginal. A bank certainly cannot move fast after a run but hopefully it will now operate smoothly," he said.
He said the obstacle hindering its recovery was the recent case of Antaboga securities company that had caused the bank to be wrongly targeted by the company's customers seeking repayment of their funds.
Antaboga customers came to Bank Century claimiing they had bought securities at Bank Century while the securities were not the bank's product.
He said it was normal for banks to sell securities. Even big banks like Bank Mandiri were doing it, particularly for their sister companies, he said.
He said the funds injected into Bank Century were a temporary capital participation, namely for only three years.
He said the bank's management would now separate its own products from those beloning to other parties.
Firdaus said the Antaboga customers must go to Antaboga. "Probably they came to Bank Century as a shortcut knowing that it had received funds from the LPS. We however will stick to the rules, namely no funds will be given to those who are not Bank Century customers," he said.***
"According to LPS financial reports, by December 2008 LPS injected up to Rp4.9 trillion and from then on until now it had injected Rp1.1 trillion so that altogether it had put Rp6.2 trillion into the bank," he said at a familiarization of the bill on financial system safety net at Putri Duyung Cottage here on Saturday.
He said the government had decided to bail out Bank Century because the bank's problem could have a systemic effect on other financial services.
"Bank Century has been saved, according to the management's report. It made a profit in March 2009 and it is hoped it will also make a profit in April," he said.
He said Bank Century's financial statement was now still being audited and the process was expected to be finished soon and after coordinating with the central bank and the finance ministry the result of the audit would be made known to the public.
"Thank God, Bank Century is now healthy. Admittedly, its liquidity is still marginal. A bank certainly cannot move fast after a run but hopefully it will now operate smoothly," he said.
He said the obstacle hindering its recovery was the recent case of Antaboga securities company that had caused the bank to be wrongly targeted by the company's customers seeking repayment of their funds.
Antaboga customers came to Bank Century claimiing they had bought securities at Bank Century while the securities were not the bank's product.
He said it was normal for banks to sell securities. Even big banks like Bank Mandiri were doing it, particularly for their sister companies, he said.
He said the funds injected into Bank Century were a temporary capital participation, namely for only three years.
He said the bank's management would now separate its own products from those beloning to other parties.
Firdaus said the Antaboga customers must go to Antaboga. "Probably they came to Bank Century as a shortcut knowing that it had received funds from the LPS. We however will stick to the rules, namely no funds will be given to those who are not Bank Century customers," he said.***
