Sunday, August 27, 2006

State banks in doubt, blame the traffic

An expat blog in Jakarta has the title...when in doubt, blame the traffic. I modify it when I read the article posted by on Sunday that bankers at state-owned banks are in doubt of whether they would be able to give write-offs or haircuts to clean up their balance sheets despite the recent Supreme Court decision. quoted Bien Subiantoro, director of PT BNI Tbk, the bank with the second most bad loans in the country behind PT Bank Mandiri. Mr Subiantoro said, "I'm not too optimistic. Even though the Supreme Court cleared the way, I'm not sure yet whether the officers at state-owned banks would have the guts to give haircuts especially considering the current situation of our legal system."
He further said, "There is psychologycal constraints."
Besides, as Mr Subiantoro said, there are few details of regulations needed to implement the new policy.
Read my previous posts for backgrounds:
1) SOE's bad loans could be written off 100%

2)Mandiri-BNI bad loans settlement: Long way to go

3) Fresh maneuver on state banks bad loans

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