Bank Indonesia and govt to resolve loan dispute

INDONESIA - Bank Indonesia is close to putting an end to a dispute with the government which has continued for two years. A final agreement has yet to be reached to this problem which is rooted in the billions of dollars in liquidity support channeled to troubled banks in the late 1990s.

An independent team, requested by the IMF to solve the problem, has proposed that the government issue special bonds to Bank Indonesia. They will be called perpetual promissory notes (PPN), and cover nearly Rp

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