⁍ Incentives originally set to expire in March 2021.
⁍ Aggregate NPL level below healthy threshold.
⁍ Bankers see move as ‘helpful
– Indonesia is giving its banks a little more time to fix their balance sheets. The country’s Financial Services Authority announced Friday that it will extend loan restructuring incentives for banks until March 2022, Reuters reports. The incentives were originally set to expire in March 2021, but the regulator wanted to give banks more time to deal with bad loans caused by the H1N1 pandemic, which has hit the country hard. The extension will allow banks to avoid setting aside provisions for bad loans, which has helped keep the country’s non-performing loan ratios below the regulator’s healthy threshold.
Source: https://www.reuters.com/article/indonesia-economy-banks/update-1-indonesia-to-extend-loan-restructuring-incentives-for-banks-to-march-2022-idUSL4N2HE0M4