JAKARTA - The credit restructuring relaxation period will be extended by the Financial Services Authority (OJK) until next year.
Wimboh Santoso, Chairman of the Board of Commissioners of OJK, said the extension was planned to anticipate a decline in debtors' quality. Restructuring, he said, would only be granted to debtors that passed a rigorous screening process.
According to him, the policy will be followed up immediately with a new regulation from OJK. The regulation will include further stimuli such as governance of credit restructuring agreements, adjustments to the fulfilment of capital conservation buffers, and adjustments in the assessment of the quality of foreclosed collateral (AYDA), among others.
OJK noted that as of 28 September 2020, banks had restructured Rp904.3 trillion worth of credit for 7.5 million debtors. (LK/AR)