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

To: CIMA who wrote (2385)	1/26/1998 11:28:00 PM
From: bill718	Read Replies (1) \| Respond to of 4718

Indonesia says to issue bonds to fund bank agency Monday January 26, 10:47 pm Eastern Time JAKARTA, Jan 27 (Reuters) - Indonesia said on Tuesday that it will issue bonds to fund a bank restructuring agency which has been charged with restoring the country's battered banking sector to financial health. The Finance Ministry said in a statement that it had also removed all restrictions on foreign ownership of Indonesian banks to enable an inflow of foreign capital into the sector. ''The government will issue bonds in order to provide the initial funding for IBRA (the Indonesian Bank Restructuring Agency),'' the ministry said in a statement. ''Further issuances can be expected as IBRA's operations develop. Over time, as recoveries increase, IBRA will be able to become more self-financing,'' it said. ''We are also eliminating all restrictions of foreign ownership of Indonesian banks, so that foreign capital can help provide the resources for a fully capitalised banking system,'' the statement added. It gave no further details on the move. It said IBRA will be made fully operational at once, with staff being transferred on secondment from the central Bank Indonesia, the finance ministry and other private and public institutions. It said the agency will also be supported by foreign advisors.