August 22, 2017 / 12:48 PM / 10 months ago

Indonesia plans changes in lending rules to help boost growth

JAKARTA, Aug 22 (Reuters) - Indonesia’s central bank plans to change some lending rules, on top of the benchmark cut made on Tuesday, to stimulate demand and get faster credit and economic growth, its governor said.

Agus Martowardojo said Bank Indonesia plans to change downpayment rules for automotive and home loans to apply differently, by regions.

Last year, BI eased the loan-to-value (LTV) ratio requirement by lowering the minimum downpayment to between 15-25 percent from 20-40 percent. Those rules apply nationally.

The central bank is also reviewing rules on loan to financing ratio (LFR) calculation, deputy governor Mirza Adityaswara said, adding that BI might include other forms of financing in the calculation, which could give commercial banks banks room to lend more. (Reporting by Nilufar Rizki, Hidayat Setiaji, Gayatri Suroyo and Fransiska Nangoy; Editing by Richard Borsuk)

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