PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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3. BANK MANDIRI MERGER AND RECAPITALIZATION Continued
Recapitalization Continued
Based on Government Regulation No. 97 of 1999 dated December 24, 1999 concerning the increase in capital of the Government of the Republic of Indonesia in Bank Mandiri within the
framework of the Recapitalization Program, the Government of Republic of Indonesia increased its investment to a maximum of Rp42,200,000, such that the total maximum investment would amount
to Rp180,000,000.
In connection with the implementation of the above Government Regulations No. 52 and No. 97 of 1999, in accordance with the Interim Recapitalization Agreement between the Government and
Bank Mandiri and its amendment, the Government issued Government Bonds in two 2 tranches of Rp103,000,000 on October 12, 1999 and Rp75,000,000 on December 28, 1999 so that as of
December 31, 1999 the total Government Bonds issued in accordance with the aforementioned Agreements amounted to Rp178,000,000 Note 8.
Based on the Management Contract dated April 8, 2000, between Bank Mandiri and the Government, the total amount of recapitalization required by Bank Mandiri is Rp173,931,000, or
less than the amount of the Government Bonds. Of such excess, Rp1,412,000 is to be retained as additional paid-in capital, and the balance of Rp2,657,000 was returned to the Government on July
7, 2000 in the form of Government Bonds equivalent to 2,657,000 two million six hundred fifty seven thousand units.
Based on the decision letter of the Ministry of State-Owned Enterprises No. 154M-MBU2002 dated October 29, 2002 and shareholder’s resolution, Bank Mandiri will return the excess of
Government Recapitalization Bonds, which was previously retained as additional paid-in capital amounting to Rp1,412,000, to the Government. As of December 31, 2002, the proposed return of
the excess of Government Recapitalization Bonds has been recorded by the Bank as “Due to the Government arising from the return of additional paid-in capital” under Other Liabilities Notes 29
and 33.
4. CURRENT ACCOUNTS WITH BANK INDONESIA
2002 2001
Rupiah 8,074,267
8,044,403 United States Dollars
1,532,852 1,850,928
9,607,119 9,895,331
The current accounts with Bank Indonesia are primarily maintained to meet the minimum legal reserve requirements of Bank Indonesia of 5 and 3 of Rupiah and US Dollar deposits,
respectively. The reserve requirement ratio of the Bank for its Rupiah and US Dollar accounts as of December
31, 2002 and 2001 are 5.19 and 3.01 unaudited and 5.26 and 3.01 unaudited, respectively.
PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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5. CURRENT ACCOUNTS WITH OTHER BANKS
a. By Currency:
2002 2001
Rupiah 2,746 5,095
Foreign currency: Standard Chartered Bank, New York and Hong Kong
91,952 2,482
American Express Bank, New York 48,275
14,395 Bank of California, New York
26,288 -
Commerz Bank, Frankfurt 16,534
- Bank of New York, New York
16,117 12,804
United Overseas Bank, Singapore 15,070
21,530 Deutsche Bank, Frankfurt
8,259 -
Citibank NA, New York 4,023
63,416 Chase Manhattan Bank, New York
1,658 7,098
Sumitomo Mitsui Banking Corporation, Tokyo 1,470
22,314 Bank One International, New York
1,072 18,300
Bank of Tokyo Mitsubishi Corporation, Tokyo -
27,462 First Union Bank International, New York
- 1,416
Others 82,027
71,572 Total foreign currency
312,745 262,789
Total 315,491
267,884 Less: Allowance for possible losses
3,726 2,461
311,765 265,423
b. By Collectibility: As of December 31, 2002 and 2001, all current accounts with other banks are classified as
current. c. By Related and Non-related Party:
As of December 31, 2002 and 2001, there are no current accounts with related party banks. d. Annual Average Interest Rates for the Year:
2002 2001
Rupiah 2.35
1.36 Foreign currency
1.17 1.15
e. Movements of Allowance for Possible Losses on Current Accounts with Other Banks:
2002 2001
Balance at beginning of year 2,461
10,286 Reversal during the year
2,274 14,936
Others 3,539
7,111 Balance at end of year
3,726 2,461
Includes foreign currency translation.