JAKARTA. Former vice president Jusuf Kalla has said that the 2008 Bank Century bailout had no legal basis because the government does not allow blanket guarantees for troubled banks. A blanket guarantee is a declaration by the government that all deposits and potentially other financial instruments will be protected. "On November 13, 2008, it was only reported that Bank Century failed the clearing, and I told them that it was normal. But I emphasized that there must not be a full guarantee so we should not conduct a bailout," Kalla was quoted as saying by tribunnews.com while testifying as a witness for Budi Mulya in the Jakarta Corruption Court on Thursday.
Kalla says Bank Century bailout had no legal basis
JAKARTA. Former vice president Jusuf Kalla has said that the 2008 Bank Century bailout had no legal basis because the government does not allow blanket guarantees for troubled banks. A blanket guarantee is a declaration by the government that all deposits and potentially other financial instruments will be protected. "On November 13, 2008, it was only reported that Bank Century failed the clearing, and I told them that it was normal. But I emphasized that there must not be a full guarantee so we should not conduct a bailout," Kalla was quoted as saying by tribunnews.com while testifying as a witness for Budi Mulya in the Jakarta Corruption Court on Thursday.