THE EFFECT OF BAD CREDIT of MSMEs CAUSED BY COVID-19 PANDEMIC

ABSTRACT : As a result of the Covid-19 outbreak, it resulted in a decline in the economic sector, where the Covid-19 resulted in the entire transport line being closed, people were encouraged to be at home and things were in the way of the trade sector. There are not a few trade sectors from small to large losses that even have a mat. The result of the decline is obviously revenue will be reduced and therefore not able to pay credit which is often called bad credit. Bad credit or problem loan is a condition where debtor can not settle the loan caused by certain factors where the debtor could intentionally or due to conditions beyond its ability. If viewed with the current problematics, the debtor will not be able to make repayment which could be considered as default because it does not perform its achievements as stated in the agreement between the Bank and the debtor that is the customer. Therefore, the Government recommends to conduct credit restructuring, where credit restructuring is an improvement made in the crediting activities of potential debtors who have difficulty fulfilling its obligations. However, credit restructuring is not necessarily done by the bank or creditor. Creditors also need to re-check the debtor for credit restructuring in order that later creditors and debtors will find the best solution.The research is carried out doctrinally. Data used in this study are primary data sources and secondary data sources by systematically interpreting the law.
KEYWORDS : covid-19, problematic loans, credit restructuring, settlement, bank