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MUFG faces multibillion-dollar write-down on Indonesian bank

Danamon's shares tanked after MSCI index removal

Bank Danamon's stock suffered from low liquidity after MUFG bought a 94% stake in the Indonesian lender.   © Reuters

TOKYO -- Mitsubishi UFJ Financial Group, Japan's biggest banking group, faces the risk of a multibillion-dollar write-down on its controlling stake in an Indonesian lender whose share price plummeted in recent weeks.

The impairment charge, which could amount to about 300 billion yen ($2.76 billion), would threaten to plunge MUFG into the first April-June quarter loss since the group formed in 2005.

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