Finance Ministry Explains Requirements for Economic Recovery Loan
Date 8 Agustus 2020
Director General of Fiscal Balance of Ministry of Finance Prima Astera on Friday (7/8) in Jakarta explained the requirements for the national economic recovery (PEN) loan for regions.
First, the loan is provided for the area affected by COVID-19.
Second, the region should have regional economic programs that are in line with the national PEN.
“The first requirement for the loan is that the region must be an area affected by COVID-19. Second, the region should have a regional economic recovery program that supports the National PEN program which is broadly divided into the parts, namely health sector, social safety net or social assistance. The third is to support the recovery of the economy,” he explained.
Third, the remaining amount of the loan plus the amount of the loan to be withdrawn does not exceed 75% of the previous year’s regional revenue.
“This is actually a general provision that applies to all regional loans, there is a threshold of 75%,” he said.
Fourth, the region should meet the ratio of regional financial capacity to repay regional loans of at least 2.5%. (Ministry of Finance/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana