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Gold/Mining/Energy : Caussa Capital (formerly Antares) T.CAU -- Ignore unavailable to you. Want to Upgrade?

To: bill718 who wrote (2375)	1/26/1998 9:38:00 PM
From: bill718	Read Replies (1) \| Respond to of 4718

Indonesia to guarantee commercial bank deposits Monday January 26, 8:33 pm Eastern Time JAKARTA, Jan 27 (Reuters) - The Indonesian Finance Ministry said on Tuesday the government would guarantee commercial banks' obligations to depositors and creditors will be met in a move to restore health to the banking sector. ''The government has decided that from today it will stand behind the commercial banks of the country and guarantee that obligations to depositors and creditors will be met,'' the ministry said in a statement. ''This means that the public can now rest assured their bank deposits are now completely safe and sound,'' it said. The ministry also said it was setting up a new government institution, the Indonesian Bank Restructuring Agency (IBRA), ''charged with bringing commercial banks back to financial health.'' It said that whenever Bank Indonesia, the central bank, discovered a commercial bank was in financial distress, it would be transferred to the umbrella of the IBRA. Indonesia has more than 200 private banks and the government has encouraged them to merge to consolidate the industry. Clearing the banks of bad assets was considered a precursor to returning stability to the crashing rupiah, now trading at 13,000-14,000 to the U.S. dollar after hitting 17,000 last week. and implement an immediate rehabilitation plan. If they are not in a position to do so, then the IBRA will take over the task itself, either by restructuring the bank's operations and finance, or by merging it with other banks,'' it said. Through this, it said, the banking system would become ''stronger, healthier and more competitive.''