Major international banks finance catastrophic mud volcano - Lapindo Brantas is shirking its responsibility for the damage

Author: Friends of the Earth International, Published on: 21 June 2007

Major international banks such as Credit Suisse, Barclays, Fortis Group, Merrill Lynch & Co. and Natixis [joint venture Groupe Banque Populaire & Caisse d'Epargne] are injecting hundreds of millions of Euros into a set of companies responsible for a catastrophic mud volcano in Indonesia, Friends of the Earth International/Europe has revealed in two new reports launched today... Friends of the Earth International has demanded that the international banks withhold any further financing from Lapindo Brantas Inc until the company pays compensation for the damage from the disaster. Lapindo Brantas has so far failed to...compensate the vast majority of the 3,500 families who have been forced from their homes... As outlined in the reports..., Credit Suisse, Barclays, Merrill Lynch, Natixis and Fortis have provided loans of several hundreds of millions of Euros to Energi Mega Persada (Indonesia), PT Medco E&P Brantas (Indonesia) [part of MedcoEnergi] and Santos (Australia), the three companies owning Lapindo Brantas... Barclays, Merrill Lynch, Fortis and Natixis did not respond at all. Credit Suisse, the bank that has provided the largest loans, said that they expect Lapindo to take its responsibility. But since May 2006 Credit Suisse has provided a new loan of US$ 126 million to Energi Mega Persada...

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Related companies: Barclays Caisse d'Epargne Credit Suisse Energi Mega Persada Fortis Groupe Banque Populaire MedcoEnergi Merrill Lynch (part of Bank of America) Natixis Santos