ANALYSIS OF BANKING CREDIT RELAXATION BASED ON CREDIT AGREEMENT LAW DURING THE COVID-19 PANDEMIC PERIOD
As a result of the Covid-19 pandemic, many people, communities, and even nations have had to alter their ways of life. Changes will harm individuals, communities, institutions, and nations that do not adapt, especially in the financial industry. The purpose of this research is to ascertain and assess the extent to which credit agreement law allowed banks to loosen their lending standards during the CoV19 outbreak. Using a doctrinal law research approach, the provisions of the relevant laws and regulations are reviewed and analyzed as a starting point for the research. This research method is normative in nature and is applied in other areas of law as well. The analysis and description in this study are based on a combination of primary and secondary sources gleaned from the examination of legal documents and secondary literature. It has been determined through this survey that Covid-19 is not a natural disaster and is instead a relative overmatch. The spread of covid-19 as a relative overmatch to the credit agreement has the legal effect of requiring the debtor to continue fulfilling his commitments and achieving his goals to the debtor even after covid-19 stops. Following bank verification and analysis of debtors affected by COVID-19 based on the law applicable credit agreement, debtors are given credit relaxation through restructuring in the form of lower interest rates, the extension of time, reduction of principal arrears, decrease in interest arrears, and other forms.
Credit Relaxation, Credit Agreement, Pandemic, COVID-19.