{
    "success": true,
    "data": {
        "id": 1029200,
        "msgid": "securitization-suggested-to-help-small-businesses-1447893297",
        "date": "1996-11-08 00:00:00",
        "title": "Securitization suggested to help small businesses",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Securitization suggested to help small businesses JAKARTA (JP): The government can securitize loans extended to small businesses and trade them on capital markets if it wants to provide more finance to small businesses, noted economist Rizal Ramli said yesterday. \"There is one thing we can do through the capital market to help small industries. We can package the loans and securitize them. Then we trade them on the capital market,\" said Rizal, a director of the Econit economic advisory group.",
        "content": "<p>Securitization suggested to help small businesses<\/p>\n<p>JAKARTA (JP): The government can securitize loans extended to<br>\nsmall businesses and trade them on capital markets if it wants to<br>\nprovide more finance to small businesses, noted economist Rizal<br>\nRamli said yesterday.<\/p>\n<p>\"There is one thing we can do through the capital market to<br>\nhelp small industries. We can package the loans and securitize<br>\nthem. Then we trade them on the capital market,\" said Rizal, a<br>\ndirector of the Econit economic advisory group.<\/p>\n<p>Speaking to The Jakarta Post after addressing a seminar on how<br>\nto help small and medium-scale businesses and cooperatives, he<br>\nsaid that many commercial banks had met the government's<br>\nrequirement that they allocate 20 percent of their total credits<br>\nto small businesses, and that several of the banks had exceeded<br>\nthe target.<\/p>\n<p>\"But on the other hand, there are still many small businesses<br>\nwhich need such financial facilities. So why don't we securitize<br>\nthe loans and trade them on the capital market like bonds,\" he<br>\nsaid, adding that the proceeds from this could be used by the<br>\nbanks to provide loans to more small businesses.<\/p>\n<p>In March this year, Rp 42 trillion in credits was extended to<br>\nsmall businesses, up 18.98 percent on March 1995.<\/p>\n<p>At yesterday's seminar, organized by Golkar, several<br>\nparticipants complained about the difficulties faced by small<br>\nbusinesses seeking loans. They urged the government to make sure<br>\nthat loans were extended to as many small businesses as possible.<\/p>\n<p>Asked whether small businesses should be given lower interest<br>\nrates, Rizal said the main problem hindering small businesses was<br>\ninadequate access to finance.<\/p>\n<p>\"Their main problem is not high interest rates, but the way in<br>\nwhich they can access the financial system to expand their<br>\nbusinesses,\" he said.<\/p>\n<p>Rizal said the government should also control lending to make<br>\nsure that loans are to be used to develop small businesses,<br>\ninstead of for consumption.<\/p>\n<p>The Capital Market Supervisory Agency's chairman I Putu Gede<br>\nAry Suta, who addressed the seminar, said that Rizal's suggestion<br>\ncould be applied to the capital market, but that it would need a<br>\ncustomized mechanism and a legal framework.<\/p>\n<p>\"Yes it is possible. We can do it in our capital market. But<br>\nof course we have to study it first thoroughly, particularly its<br>\nlegal aspects,\" he told the Post. (bnt)<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/securitization-suggested-to-help-small-businesses-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}