Astra Financial restructures US$1.48 billion in loans

Astra Financial restructures US$1.48 billion in loans

Terbaiknews - An app-based motorcycle taxi driver signs the proposal for credit restructuring at FIFGROUP's branch office in Jakarta. (JP/Courtesy of Astra Financial)

Astra Financial, a lending consortium under diversified conglomerate Astra International, has restructured loans to some 792,000 customers – worth a total ofRp 21.9 trillion (US$1.48 billion)–as part of the loan-relaxation program introduced by the government in March, this year.

Three subsidiaries of Astra Financial, namelyautomobile financing businesses Astra Credit Companies (ACC) and Toyota Astra Finance and motorcycle financing business Federal International Finance (FIFGROUP), restructured the loans in compliance with a Financial Services Authority (OJK)regulation on easing loan repayment.

"We are thankful that as of May 17, or within 1.5 months since the program was launched, the total [value] of restructured loans approved by ACC, TAF and FIFGROUP has reached Rp 21.9 trillion for 792,000 customers throughout all provinces in Indonesia," Astra Financial directorSuparno Djasmin said in a statement on Wednesday.

According to Astra Financial, OJK data on May 17 showed that financing firms had restructured Rp 52.9 trillion in loans to some 1.79 million borrowers, meaning that the value of credit restructuring by ACC, TAF and FIFGROUP accounted for 41 percent of all loans restructured by Indonesia"s financing industry.

Most customers covered by the restructuring program had borrowed through FIFGROUP, which has restructured loans for some 683,000 people with a total valueRp 6.7 trillion since the OJKinstructedfinancial institutions to provide relief for borrowers affected by the COVID-19 pandemic in late March.

The ACC and TAF haverestructured loans for some 78,000 and 30,993 customers, respectively, for loans totaling Rp 11 trillion and Rp 4.2 trillion. The two companies provided an online platform for borrowers to request for loan relief.

"We have been actively offering customers affected [by COVID-19 crisis the opportunity] to take our restructuring programs to help them get through the pandemic," TAF president director Agus Prayitno said. (afr)

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