MSME Debt Write-Off Program Falls Short of Expectations
The MSME debt write-off program by state-owned banks failed to increase credit demand, despite expectations that it would spur productive businesses.
(Bisnis.Com) 01/01/70 07:00 13202
Bisnis.com, JAKARTA — The debt write-off by state banks for bad MSME loans is failing to have any positive impact on credit demand in the segment ever since President Prabowo Subianto pushed the matter by issuing Government Regulation No. 47/2024 on November 5, 2024, shortly after his inauguration.
The regulation stipulates the mechanism for write-off and debt forgiveness of bad loans held by micro, small, and medium enterprises (MSMEs) from banks or non-bank financial institutions under state-owned enterprises (SOEs).
#msme-debt #debt-write-off #state-banks #bad-loans #prabowo-subianto #government-regulation #debt-forgiveness #non-performing-loans #state-owned-banks #credit-disbursement #financial-services-authority