Procedures for Submitting Outstanding Accounts and Payments Due from Community Credit Banks

The Government in ending the Payment Guarantee Obligations for Community Credit Banks (BPR) pursuant to Presidential Regulation No. 43 of 2005 (see ILB (28/6/2005)) the Minster of Finance (MOF) is required to issue this Regulation, No. 06/PMK.05/2006 (the “Regulation”).

The procedure for submitting due and payable accounts will require the production of all relevant documents and identification. In the event that the recipient has passed then the relevant heirs will need to produce legal documentation identifying them as the rightful heirs to any payments. However, the Regulation is clear that the submission of the relevant accounts does not generate any obligation binding on the Department of Finance to make payment. These documents were required to be submitted by 22 February 2006. However, it is important to note that late submission does not prevent payments from being made. Nevertheless, late submission means that any payments due will be settled pursuant to regulations governing the liquidation of banks.