Regional Loans for Provinces, Regencies, Cities

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About Regional Loans for Provinces, Regencies, Cities

Get to know the product

Regional Loans are Regional debt financing that is bound in a loan agreement and not in the form of securities, which results in the Region receiving a sum of money or receiving benefits that are worth money from other parties, so that the Region is burdened with the obligation to repay which refers to Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments.

Name of Issuer

Main Features

The maximum limit of Regional Loans is the amount of the remaining Regional Loans plus the amount of Regional Loans that will be withdrawn not exceeding 75% (seventy-five percent) of the total revenue of the previous year's APBD which is not determined for use.

Risk

If there are payment arrears, the debtor's credit history will be recorded in the Financial Information Service System (SLIK)
There is an additional penalty fee if the debtor is in arrears of credit obligations
Collateral can be repossessed if payment obligations are not fulfilled in accordance with the Credit Agreement.

Requirements

All revenues and expenditures in the framework of Regional Loans are included in the APBD.

The ratio of the Regional Financial Ability to return Regional Debt Financing is set at least 2.5 (two point five).
Prospective borrowers submit a regional loan plan by attaching at least the following documents:

DPRD approval except for Cash Management;
Copy (copy) of the minutes of the inauguration of the Regional Head;
Terms of reference for activities that have received a review from the regional government internal supervisory apparatus;
Regional Medium-Term Development Plan for the relevant period;
RKPD for the relevant year;
Regional Government Financial Statements for the last 3 (three) years that have been audited by the Supreme Audit Agency;
Regional Regulation on the APBD for the current fiscal year;
Draft Regional Regulation on the APBD for the relevant loan year;
Statement of not having arrears on loan repayments originating from the Government; and
Calculation of the ratio of regional financial capacity to repay loans.

Cost

Regarding the fees charged, please contact the nearest Bank Sumsel Babel Branch Office directly.

Additional Information

To get more information about Bank Sumsel Babel credit products, please visit the nearest Bank Sumsel Babel Branch Office or contact Customer Care Hotline 1500711.