Write It Down! Understand These Rules First Before Applying For Credit And Financing Restructuring

Car dealer illustration. (Photo: By courtesy)

JAKARTA - The Financial Services Authority (OJK) has extended the bank credit restructuring program until March 2022. Not only that, but the authority also ensures that the restructuring of financing in finance or leasing companies is valid until April 2022.

This policy is contained in POJK Number 48/POJK.03/2020 concerning Amendments to the Regulation of the Financial Services Authority Number 11/POJK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy on the Impact of the Spread of Coronavirus Disease 2019.

In essence, credit restructuring is an effort to make improvements in lending activities for debtors who have the potential to experience difficulties in fulfilling their obligations. Credit restructuring policies undertaken by banks include lowering credit interest rates, extending credit terms, reducing arrears in loan interest.

Then, reduce the principal credit arrears, add credit facilities, and/or convert credit into temporary equity participation.

There are several requirements to apply for credit restructuring to banks or financing institutions, namely the debtor is experiencing difficulties in paying principal and/or loan interest, and the debtor has good business prospects and is considered capable of fulfilling obligations after the credit is restructured.

OJK itself in an official broadcast states that there are at least four important points that must be understood by the public or institution before applying for credit or financing restructuring. Here are the four points.

1. Restructuring is only given to debtors who are informal workers, have daily income, and whose businesses are affected by the coronavirus and are experiencing difficulties in paying installments.

2. Debtors who are not affected and have the ability to pay so that they continue to make payments on time.

3. The bank/finance company will provide relief after conducting an assessment of the affected debtor's condition.

4. All banks/finance companies can provide credit and financing relief.

In a meeting of the Financial System Stability Committee (KSSK) on Monday, February 1, the Chairman of the OJK Board of Commissioners Wimboh Santoso said that currently, bank credit restructuring has reached IDR 971 trillion, equivalent to 18 percent of total credit. This facility has been provided to approximately 7.6 million SME and corporate debtors.

Then, the finance company has also restructured its customers in the amount of IDR 191.58 trillion from the 5 million contracts that have been approved. This data is cited based on reports through January 25, 2021.