IS there in fact any connection between Paul Volcker, a former governor of the US central bank, and Bank Indonesia Liquidity Assistance funding (BLBI)? The answer, in a nutshell, is yes. Last year, when he headed up a BLBI team, it was Volcker who made the proposal that the government issue special securities—that have more recently come to be known as capital maintenance notes (CMN)—in order to settle the BLBI conflict.

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