Jakarta culls banks in IMF deal to salvage economy

Click to follow
Indonesia today announces details of deregulation measures aimed boosting the economy after closing 16 banks in a quick start on an IMF- backed economic-reform programme. Sources said several of the banks liquidated on Saturday were associated with politically well-connected business figures, including members of President Suharto's family.

The banking and financial sectors are key areas for reform under a package agreed with the IMF, World Bank, Asian Development Bank and individual donors. Indonesia went to the IMF last month to stabilise the tumbling rupiah and restore confidence in financial markets, battered by currency turmoil across South-East Asia. - Reuters