JAKARTA - The Financial Services Authority issued two provisions extending the relaxation policy period for bank credit restructuring from March 2022 to March 2023 to maintain the momentum of economic recovery.

The POJK issued consists of POJK Number 17/POJK.03/2021 concerning the Second Amendment to POJK Number 11/POJK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019 and POJK Number 18/POJK.03/2021 concerning Second Amendment to POJK Number 34/POJK.03/2020 concerning Policies for Rural Banks and Islamic Rural Financing Banks as the Impact of the 2019 Coronavirus Disease Spread.

Chairman of the OJK Board of Commissioners, Wimboh Santoso, said that the extension of the relaxation period for bank credit restructuring is expected to continue the momentum of economic recovery and encourage growth in bank lending.

"The extension of the countercyclical policy is an anticipatory and further measure to encourage optimization of banking performance, maintain financial system stability, and support economic growth, in order to maintain the momentum of banking indicators that have improved and to prepare banks and debtors to return to normal slowly so as to avoid potential turmoil. after this policy ends," said Wimboh.

The extension of the two provisions related to the economic stimulus policy is expected to maintain performance stability from both the banking side and the real sector business actors who have an important role in national economic recovery. (LM)