Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 08 July 2022
Implementation of Syndicated Credit Agreements by Conventional Commercial Banks during the COVID-19 Pandemic
Hilda Yunita Sabrie, Ananda Amalia Tasya, Harven Filippo Taufik, Anita Maharani Tanusaputri, Yusuf Arif Utomo
Airlangga University (Indonesia), PT Bank Jatim (Indonesia)
Download Full-Text Pdf
10.31014/aior.1992.05.03.432
Pages: 16-31
Keywords: Syndicated Credit, Credit Restructuritation, COVID-19
Abstract
The global spread of COVID-19 in 2020 has led to a decrease in lending and an increase in bank credit risk due to a decline in debtor performance. As an effort to mitigate this impact, banking authorities in various countries have issued guidelines related to easing loan terms and conditions for debtors affected by COVID-19. The Indonesian government through the OJK has issued several national economic stimulus policies that provide concessions to debtors affected by COVID-19. This study will focus on discussing the concept of syndicated credit agreements in Indonesia and the syndicated loan restructuring policies that are enforced in normal times and during the COVID-19 pandemic. As for the discussion, a comparison of rules and policies in other countries will also be presented, as comparison material for review. This study found that there are similarities in the legal construction of ordinary credit agreements and syndicated loans so that the OJK Regulation No.11/POJK.03/2020 and its amendments can be applied to syndicated loans as well. The leniency given to debtors in terms of restructuring during the pandemic includes the quality of restructured loans, approval mechanisms, ceilings, restructuring period.
References
Bahfein, S., (2021, May 31). Achieves Rp 4.55 Trillion Syndicated Loan Restructuring, Waskita Pays Debt. Kompas.com. https://www.kompas.com/properti/read/2021/05/31/210000921/raih-restrukturisasi-kredit-sindikasi-rp-4-55-triliun-waskita-bayar?page=all.
Bartik, A. W., Bertrand, M., Cullen, Z., & Stanton, C. (2020). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences of the United States of America, 117(30), 17656-17666. https://doi.org/10.1073/PNAS.2006991117/-/DCSUPPLEMENTAL.
Bourdas, D. I., & Zacharakis, E. D. (2021). Physical Activity: COVID-19 Enemy. Archive of Clinical and Medical Case Reports, 5(1), 84 - 90. https://doi.org/10.26502/acmcr.96550330.
Buana Finance. (2020). Information on Procedures for Submitting Restructuring/Financing Relief for Debtors Affected by COVID-19. https://www.buanafinance.co.id/Tata-Cara-Restrukturisasi-Buana-Finance_New.pdf
Casanova, C., Hardy, B., & Onen, M. (2021) COVID-19 policy measures to support bank lending. BIS Quartely Review. https://www.bis.org/publ/qtrpdf/r_qt2109d.htm.
Central Bank of Nigeria. (2020, March 16). Circular to Deposit Money Banks and The General Public on: CBN Policy Measures in Response to COVID-19 Outbreak and Spillovers. https://www.cbn.gov.ng/Out/2020/FPRD/CBN%20POLICY%20MEASURES%20IN%20RESPONSE%20TO%20COVID-19%20OUTBREAK%20AND%20SPILLOVERS.pdf
Central Bank of the U.A.E. (2021). Standards For the Targeted Economic Support Scheme (TESS). https://centralbank.ae/en/node/2253
Cita, H. R., Abubakar, L., & Mulyati, E. (2018). Legal Position of New Creditors Recipient of Transfer of Receivables Without the Approval of Agents and Other Syndicated Participants. Jurnal Bina Mulia Hukum. 3(1), 29 - 42. https://doi.org/10.23920/jbmh.v3n1.3.
Ҫolak, G., & Öztekin, Ö. (2019). The Impact of COVID-19 Pandemic on Bank Lending Around the World. Journal of Banking and Finance, 133, 106207. https://doi.org/http://dx.doi.org/10.2139/ssrn.3712668.
Damaran, D. (2022, January 2). Syndicated Loan Rate Will Be Excited, This is the Factors. Finansial. https://finansial.bisnis.com/read/20220102/90/1484453/laju-kredit-sindikasi-bakal-bergairah-ini-pendorongnya.
Djaman, A. (2019). Review of Syndicated Loans Under Contract Law. Lex Privatum, 7(5), 14 - 24. https://ejournal.unsrat.ac.id/index.php/lexprivatum/article/view/26984.
Djumhana, M., (2003) Hukum Perbankan Di Indonesia. PT. Citra Aditya Bakti
Goolsbee, A., & Syverson, C. (2021). Fear, lockdown, and diversion: Comparing drivers of pandemic economic decline 2020. Journal of Public Economics, 193. https://doi.org/10.1016/J.JPUBECO.2020.104311.
Gungoraydinoglu, A., Çolak, G., & Öztekin, Ö. (2017). Political environment, financial intermediation costs, and financing patterns. Journal of Corporate Finance, 44, 167 - 192. https://doi.org/10.1016/J.JCORPFIN.2017.03.007.
Hariyani, I. (2010). Restructuring and eliminating bad loans. Elex Media Komputindo
Inshakova, A., Goncharov, A., & Kazachenok, O. (2018). Legal Regulation of the Syndicated Lending: Banking Innovations in Contemporary Russia. Revisra Espacios, 39(28). https://www.revistaespacios.com/a18v39n28/a18v39n28p07.pdf.
Inshakova, A. O., Goncharov, A. I., Kazachenok, O. P., & Kochetkova, S. Y. (2017). Syndicated Lending: Intensification of Transactions and Development of Legal Regulation in Modern Russia. Journal of Advanced Research in Law and Economics, 8(3), 838 - 842. https://doi.org/10.14505/jarle.v8.3(25).17.
Kasmir. (2012). Bank dan Lembaga Keuangan Lainnya. Raja Grafindo Persada.
Lailiyah, A. (2014). The Urgency of 5C Analysis in Banking Loans to Minimize Risk. Yuridika. 29(2), 217 - 232. https://doi.org/https://doi.org/10.20473/ydk.v29i2.368.
Mansoor, Z. (2020, August 9). UAE Central Bank Ramps Up TESS Scheme to Support Banking Sector. Gulf Business. https://gulfbusiness.com/uae-central-bank-ramps-up-tess-scheme-to-support-banking-sector/
Marzuki, P.M. (2010). Penelitian Hukum. Kencana Prenada.
Mulyati, E., & Dwiputri, F. A. (2018). Prudential Principles in Analyzing Material Collaterals as Security for Banking Credit Agreements. Acta Diurnal, 1(2), 134 - 148. https://jurnal.fh.unpad.ac.id/index.php/acta/article/view/164.
OECD. (2021). Resolution strategies for non-performing loans in the post-COVID-19 landscape, https://www.oecd.org/daf/fin/financial-markets/Resolution-strategies-for-non-performing-bank-loans-in-the-post-COVID-19-landscape.pdf
Organisation for Economic Co-operation and Development. (2021). COVID-19 Government Financing Support Programmes for Businesses: 2021 Update. https://www.oecd.org/finance/COVID-19-Government-Financing-Support-Programmes-for-Businesses-2021-Update.pdf.
Otoritas Jasa Keuangan. (2021). Summary of Regulation of the Financial Services Authority of the Republic of Indonesia Number 30/Pojk.05/2021 concerning the Second Amendment to the Regulation of the Financial Services Authority Number 14/Pojk.05/2020 concerning Countercyclical Policy Impact of the Spread of Coronavirus Disease 2019 for Non-Bank Financial Services Institutions. https://www.ojk.go.id/id/regulasi/Documents/Pages/Peraturan-OJK-tentang-Perubahan-Kedua-Atas-POJK-Nomor-11-POJK.03-2020-/SUMMARY%20POJK%2017%20-%2003%20-2021.pdf
Pástor, Ľ., & Veronesi, P. (2013). Political uncertainty and risk premia. Journal of Financial Economics, 110 (3), 520 - 545. https://doi.org/10.1016/J.JFINECO.2013.08.007.
Prima, B., (2021, June 9). Waskita Karya (WSKT) extends the syndicated loan maturity period. Stocksetup. https://stocksetup.kontan.co.id/news/waskita-karya-wskt-memperpanjang-masa-jatuh-tempo-kredit-sindikasi.
Priady, N. (2021). Legal Protection Against the Parties in the Syndicated Credit Agreement. Recital Review, 3(1), 216 - 231. https://online-journal.unja.ac.id/RR/article/view/12933.
Purborini, V. S., Gufron, M., & Wisnuwardhani, D. A. (2020). Responsibilities of Syndicated Credit Agents in the Case of Default Debtors. Merdeka Law Journal, 1(1),1- 9. https://doi.org/10.26905/mlj.v1i1.4288.
Pusat Data Ekonomi dan Bisnis Indonesia. (2021, October 11). Highest Non-performing Banking Credit in History. https://databoks.katadata.co.id/datapublish/2021/10/11/nominal-kredit-bermasalah-perbankan-tertinggi-dalam-sejarah
Pusat Data Ekonomi dan Bisnis Indonesia. (2021, July 5). The Non-Performing Loan Ratio in Banking Continues to Increase Due to the Pandemic. https://databoks.katadata.co.id/datapublish/2021/07/05/terimbas-pandemi-rasio-rasio-kredit-bermasalah-perbankan-semakin-meningkat
Pusat Data Ekonomi dan Bisnis Indonesia. (2022, April 14). Non-performing bank loans are still high until early 2022. https://databoks.katadata.co.id/datapublish/2022/04/14/kredit-bermasalah-perbankan-masih-tinggi-sampai-awal-2022#:~:text=Berdasarkan%20Statistik%20Perbankan%20Indonesia%20Otoritas,yang%20jumlahnya%20Rp5%2C71%20kuadriliun
Puspasari, R. (2020, July 29). The Government's Latest Policy in the PEN Program to Support Corporations. Kementerian Keuangan Republik Indonesia. https://www.kemenkeu.go.id/publikasi/siaran-pers/siaran-pers-kebijakan-terbaru-pemerintah-dalam-program-pen-untuk-dukung-korporasi/.
Richard, M. (2021, August 29). Bisnis Indonesia Syndicated Bank Loans Again Sluggish. Bisnis Indonesia. https://bisnisindonesia.id/article/kredit-sindikasi-bank-kembali-lesu.
Sastradinata, D. N., & Muljono, B. E. (2020). Legal Analysis of Credit Relaxation During the Corona Pandemic With Loan Loans Based on Financial Services Authority Regulation Number 11/POJK.03/2020. Jurnal Sains Sosio Humaniora, 4(2), 613 – 620. https://doi.org/10.22437/jssh.v4i2.11009.
Siregar, R. Y., Gunawan, A. H., & Saputro, A. N. (2021). Impact of the COVID-19 Shock on Banking and Corporate Sector Vulnerabilities in Indonesia. Bulletin of Indonesian Economic Studies, 57(2), 147 - 173. https://doi.org/10.1080/00074918.2021.1956397/SUPPL_FILE/CBIE_A_1956397_SM9789.XLSX.
Subekti. (1982). Guarantees For Loans Under Indonesian Law. Alumni.
Tajidan, Halil, Efendy, Fernandez, F. X. E., Usman, M., & Jamil, M. H. (2021). Added value rentability of tofu agroindustry business in North Lombok Regency. IOP Conference Series: Earth and Environmental Science, 807(2), 1 - 14. https://doi.org/10.1088/1755-1315/807/2/022019.
Umardani, M. K. (2016). Syndicated Loans in the Perspective of Banking Law and Regulations (Case Study at PT Bank DKI). Adil: Jurnal Hukum, 7(1), https://doi.org/https://doi.org/10.33476/ajl.v7i1.334.
Veithzal, Rivai H., & Permata Veithzal, A. (2006) Credit Management Handbook: Theory, Concepts, Procedures, and Applications of Practical Guides for Students, Bankers, and Customers. PT. Rajagrafindo Persada
Wiratmini, Ni Putu Eka. (2020, April 17). Note! Here are the details of the BRI Credit Restructuring Scheme. Bisnis.com. https://finansial.bisnis.com/read/20200417/90/1228678/catat-begini-rincian-skema-restrukturisasi-kredit-bri
Usanti, T. P., & Shomad, A. (2017). Banking Law. Kencana.