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The reason why Jokowi proposes to extend COVID-19 credit restructuring until 2025

The reason why Jokowi proposes to extend COVID-19 credit restructuring until 2025

 



Jakarta

Coordinating Minister for Economic Affairs Airlangga Hartarto explained the reasons why President Joko Widodo (Jokowi) wants the COVID-19-affected credit restructuring program in the banking sector to be extended until 2025. The program ended in March 2024.

Airlangga said the reason why the credit restructuring program wanted to be extended was because several credit guarantee companies were currently asking for bonuses or additional bonuses. The reason is that there is problematic credit risk (non-performing loan/NPL).

“The basis is that several companies that guarantee credit ask for an additional premium. If the credit guarantor asks for an additional premium, it means there is a credit problem,” Airlangga said during a meeting at his office , in Central Jakarta, Friday (28/6/2024).

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As is known, through the credit guarantee system, guarantee institutions facilitate MSMEs' access to banks/financial institutions. feasible but not yet bankableThis means that the limited capital available to MSMEs is due to difficulties in accessing sources of finance as they are unable to provide collateral.

This credit guarantee company's function is to guarantee the fulfillment of financial obligations of MSMEs as beneficiaries of credits from banks/financial institutions.

Unfortunately, Airlangga cannot confirm when the COVID-19 affected credit restructuring extension program will be carried out as it is still under discussion.

“But for MSMEs, there will be a different solution,” Airlangga said.

(help/ara)

Sources

1/ https://Google.com/

2/ https://finance.detik.com/moneter/d-7413589/alasan-jokowi-usul-restrukturisasi-kredit-covid-19-diperpanjang-hingga-2025

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