Mandiri Owner Predicts Slowing Credit Growth Because of Corona Virus – President Director of PT Bank Mandiri Tbk (BMRI) Royke Tumilaar predicted that credit growth in semester 1 of 2020 will slow down. One reason is because of the spread of the corona virus.
“The first semester will definitely slow down, I’m sure because of this incident, we are concerned with this corona will definitely have an impact (impact),” Royke said when met at his Office, Jakarta, Wednesday (19/2/2020).
Royke said, the sector most affected by the spread of the corona virus was the tourism sector. While Bank Mandiri said he, has a number of credit portfolios in the tourism sector. Mandiri Owner Predicts Slowing
“What is certain is that the tourism sector has been hit, the airline sector has been hit, we are about portfolios and we have not talked about such raw materials from China, the factories must have been hampered to produce,” he said.
“Then if the factory slows down purchasing power, what is the company’s ability to expand, it’s not easy to see the study. But there must be an impact, credit growth is rather slow in the beginning,” added Royke.
So he estimates that the potential for non-performing loans or Bank Mandiri Non-Performing Loans (NPL) due to the corona virus will reach 0.2 to 0.3 percent.
“We simulate that if corona may take up to 6 months, there must be an increase in NPL of 0.2 – 0.3 percent,” he said. Bandar Ceme Bonus New Member
Even so, Royke remains optimistic that the spread of the corona virus will stop more quickly, so that all economic activities will return to normal.
“I’m still optimistic, huh. Throughout this corona, it can end quickly,” he concluded.
Corona virus outbreak that has spread to 28 countries in the world threatens the global economy. South Korean product exports to a number of countries have declined since the corona virus broke out, so stimulus is needed to boost the economy. A number of international institutions are revising the prospects for South Korea’s economic growth. Moody’s Investor Service cut the ginseng country’s economic growth forecast from 2.1% to 1.9% by 2020.
JP Morgan also revised the South Korean economic growth projection of 0.1% to 2.2%. Moon stressed the importance of preventive and gradual steps so that his country regained momentum of economic growth. The use of emergency funds to respond to the corona virus pandemic (Covid-19) is the first step in using the government budget to overcome this problem. “To respond to economic emergencies, I want you to issue policies that go beyond expectations and there are no limits to those policies,” Moon said.