Indonesia allows insolvent bank to re-open

A bank in Indonesia owned by a relative of President Suharto has been allowedto re-open less than two months after being closed down under the terms of a financial support package agreed with the International Montetary Fund.

Bank Jakarta, which is owned by President Suharto's half-brother, Probosutedjo, was among sixteen banks liquidated because they were insolvent.

Two other banks in which close relatives of President Suharto had an interest were also closed.The BBC Jakarta correspondent says the decision to re-open the bank could further damage investor confidence as it suggests the government is weakening in its resolve to tackle the country's economic crisis.

From the newsroom of the BBC World Service