Bali SME loan repayment requirements to be eased

The Financial Service Authority (OJK) plans to issue a regulation on easing loan repayment requirements for small and medium enterprises (SMEs) in Bali affected by the eruption of Mount Agung.

"A lot of borrowers have had to cease business operations because of the disaster, and travel warnings issued by foreign governments have reduced the number of tourist arrivals," OJK chairman Wimboh Santoso said in a statement on Sunday.

The OJK was able to ease requirements because in the last three month, non-performing loans (NPL) were less than the tolerable level in Bali, he added.

Karangasem Regent I Gusti Ayu Mas Sumantri, whose region has been affected the most by the eruptions, said many debtors were hopeful of having their payment burdens eased.

Tourism Minister Arief Yahya said that after Mount Agung first erupted in late November, tourist arrivals dropped to about 2,000 tourists per day from the usual 15,000.

He said, however, that tourist arrivals were gradually returning to normal and reached 12,300 tourists last week. "Arrivals have reached 80 percent of the usual figure,” he said. (bbn)