Performing Loan Debtor Management & Collection

A loan that performs today can become non-performing tomorrow when the debtor's cash flow declines. Credit rescue (restructuring) is the bank's effort to repair credit for debtors who have difficulty meeting their obligations but still have good business prospects, so that risk is reduced, customer trust is maintained and an increase in Non-Performing Loans (NPL) is anticipated.

Over two days, participants learn the policies and procedures for handling performing loans: the regulatory basis and asset quality assessment, impairment (expected credit loss), the causes of problem loans, how to choose a rescue strategy, the five restructuring schemes and seven resolution schemes, and the procedure from data to monitoring. Each step is practiced on case studies so that branch office analysts feel more confident to take the restructuring steps that are needed.

After completion of this program, participants will be better able to:

• Explain credit rescue (restructuring) of performing loans, including its requirements and regulatory basis
• Assess a debtor with the three OJK pillars and calculate expected credit loss
• Identify the causes of problem loans from the external, debtor and creditor sides
• Classify a debtor's problem as temporary, timing or serious and choose a rescue strategy
• Select the best restructuring or resolution scheme and design the credit structure
• Follow the restructuring and resolution procedure, prepare the memorandum and monitor the result
• Propose the best strategy, scheme and structure that gives maximum benefit to the bank