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Jakarta Post

Loan restructuring extended until 2022

  • Yunindita Prasidya

    Jakarta

Jakarta   /   Tue, October 27 2020   /  01:00 am
Someone’s watching: A man walks past the Financial Services Authority (OJK) building in Central Jakarta on May 15, 2013. Critics have mounted on the OJK to improve its oversight of the country’s financial services industry. (Tribunnews/Herudin)

The Financial Services Authority (OJK) has announced that it will extend its loan restructuring program, issued to cushion the impact of the pandemic on the country’s borrowers and banks, until March 2022.  The OJK said it would finalize the policy extension in the form of an OJK Regulation (POJK) and would extend several other programs at the same time, including the exclusion of the loan-at-risk calculation when assessing a bank’s health. “The extension of this restructuring program serves as an anticipatory step to provide support against the declining quality of borrowers seeking restructuring,” OJK chairman Wimboh Santoso said in a press release on Thursday.  “However, the restructuring extension policy has to be given selectively, based on the bank’s assessment, to avoid moral hazard so that borrowers still want and are able to...