Bank Indonesia mulls easing of loan rules to boost credit growth

Jakarta

INDONESIA'S central bank is considering loosening lending regulations to help stoke credit growth in South-east Asia's largest economy.

One possible measure is to let homeowners take out loans to purchase a second property "off the plan", or one that is pre-construction, said Mirza Adityaswara, senior deputy governor at Bank Indonesia, in an interview on Tuesday in Jakarta. Another option is raising banks' minimum loan-to-funding ratio from the current 78 per cent.