sri mulyani and bank century: don't jump to conclusions
Finance Minister Sri Mulyani Indrawati, who led the committee that determined that Century needed help, said the bailout was “legal” and failure to act might have “burned” the nation’s finance sector... [and] without the rescue, the country’s banking industry could have faced the threat of a liquidity crisis in light of the global financial meltdown.
One of the the Jakarta Globe's headline confused me this morning. "Indonesia Finance Minister Backs Bank Century Bailout" it reads.
Why am I confused? Because only last week I read an extract from minutes of a meeting where Sri Mulyani clearly warned against the bailout. I was under the impression that she did NOT support the bailout.
Why the contradiction? I think it is because Sri Mulyani is speaking on behalf of the committee -- not in her personal capacity or as the Finance Minister. If this is the case, then it is very important that we don't jump to conclusions.
I seriously doubt that the Finance Minister and the Vice President are involved in anything illegal or inappropriate. Bailing out Bank Century may not have been the best decision, and it certainly led to a much bigger problem -- the Susno-Sampoerna (alleged) crime -- but that doesn't mean that these two are guilty of anything untoward.
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