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Thursday, May 28, 1998 Published at 21:05 GMT 22:05 UK


World: Asia-Pacific

Indonesian bank taken over


The Indonesian authorities have taken control of the country's biggest private bank PT Bank Central Asia, which is owned by family and friends of former President Suharto.

There's been a run on the bank since the President's resignation last week.

The Central Bank governor Sjahrir Sabirin refused to say if the move was because of the bank's ownership, saying only that the bank was experiencing liquidity problems.

Meanwhile, a senior official of the International Monetary Fund Asia-Pacific head Hubert Neiss has raised the possibility that the rescue package for Indonesia's economy could be increased.

He said the reform programme needed to be adjusted as the economy has further deteriorated.

From the newsroom of the BBC World Service



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