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SMEs

A Restructuring That May Backfire

Tuesday, March 19, 2002

The government will provide easy terms for debtors owing less than Rp5 billion. Will this policy create a new moral hazard?

arsip tempo : 173515420611.

. tempo : 173515420611.

For the past five years, the Small and Medium-Scale Enterprises (SMEs) have not been able to settle their non-performing loans. Now, the government has suddenly decided to intervene. In order to settle non-performing loans of 414 SMEs worth Rp39.5 trillion, the government will provide a 50 percent debt principal reduction for SME debtors who can repay their debts in cash and a 40 percent debt principal reduction for those who can settle their

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