Restructuring of Banking Credit Problems During the Covid-19 Pandemic

Abstract

This research aims to break down the information regarding restruturing as a problem solving alternative to the disbursement of credit loans. For debtors who struggle to meet their payment commitments, credit restructuring is a step in assessing bank credit activity. It is required to conduct research in order to examine different debt restructuring arrangements and implementations in the banking sector during the pandemic and to provide answers to various queries related to the provisions that have been submitted. The findings indicate that restructuring of bad loans by financial institutions during the Covid-19 pandemic related to legal relation with micro, small, and medium enterprises must be based on good faith contracts by each party concerned, with every action taken must be prioritized by each side equally. Second, regarding settling non-performing loans during the pandemic, the role of government is to issue countercyclical policies.