Netherlands-based Indonesische Overzeese Bank N.V. (Indover), a subsidiary of Indonesia's central bank, will pay claims of its creditors at the fastest next month, Bank Indonesia (BI) has said.
BI Deputy Governor Ardhayadi Mitroatmodjo said BI had met Indover's liquidator, which said the claims could be disbursed in the next one or two months.
"Each *creditor of Indover's Netherlands branch* will receive 47 percent of total claims," he said last week after a meeting with the House of Representatives' commission XI overseeing financial affairs.
The amount of claims is based on the total assets of Indover as priced and realized at auction.
Meanwhile, creditors of Indover's Hong Kong branch will receive 100 percent of claims as the total assets sold via auctions there were priced at more than 100 percent, said Ardhayadi.
He could not elaborate on the total amount of claims that should be paid by Indover.
Indover was declared bankrupt by a Dutch court in December 2008 after suffering a liquidity shortage, which prompted the court to freeze the bank's assets on Oct. 6, 2008.
BI sought to save Indover via a proposed 545.65 million (US$743.23 million) bailout, but the House of Representatives refused to approve this.
Several state-run and foreign-owned banks had placed funds in Indover, believing deposits were guaranteed as BI had earlier issued a "comfort letter", which was reportedly represented by Indover as a BI guarantee, although it was said to have been normally attached to the annual accounts.
The National Police suspected Indover misrepresented the letter to obtain loans from creditors. The case is not yet resolved.
BI repeatedly said the letter given to creditors involved no criminal acts. But Indonesia's banks are looking to receive their claims, Kontan business daily reported.
State-run BRI, which has Rp 500 billion ($53.5 million) in claims, said it could use the funds for financing.
State-run Bank Mandiri has $31 million in claims and state-run BNI $27 million. Privately-owned Bank Bukopin has $31 million in claims, and CIMB Niaga has $5 milllion.
