A Central Bank Hanging By A Thread

Auditors say Bank Indonesia needs billions for a rescue

Indonesia's battered financial system has received another body blow: The country's central bank could be near insolvency. That's the word from government officials. In early January they announced that a report by Big Five auditor KPMG--ordered up by the International Monetary Fund and Indonesian authorities--disclosed that Bank Indonesia was in the red. Precise figures are still hard to come by. But the officials say the central bank is short at least some $7 billion.

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