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AKARTA: Borrowers affected by the recent disasters in Yogyakarta and Central Java, the Mentawai Islands, and Wasior in West Papua can now restructure their debts, Bank Indonesia (BI) formally announced.

For three years beginning on Oct. 26 this year, borrowers can restructure debts and obtain additional credit if necessary, BI spokesman Difi Johansyah said.

“The negative impact of the disasters is quite widespread, affecting the economy as well as bank performance in the area,” Difi said in a statement on Sunday. Areas of coverage include Magelang, Boyolali, Klaten, Sleman, Mentawai Islands and Wasior regencies.

As reported earlier, the central bank’s data shows that the total loans given to companies and residents affected by the recent disasters — the Mount Merapi eruptions, the Mentawai tsunami and Wasior flash floods — had reached Rp 315.72 billion (US$35 million). — JP