Non-performing loans amounting to Rp12, 7 billion is a venture capital loan is rolled out to the local governments of small and medium businesses in the period 2002-2009.
Bad credit is one of the findings of Supreme Audit Agency (BPK) to the consolidated financial results of Karimun regency government since 2009.
Soft loans are channeled through a team of Capital Loan Provider Coordination Forum, but since maturity, entrepreneurs who get loans through banks designated not pay it off.
Legislative Assembly proposed that the credit crunch Karimun is used as nonpermanent equity, the goal that the designated banks to channel loans can seize pledged collateral or guarantees that the business receiving the loan.
Meanwhile, the Head of Economic Section Karimun regency government, Herwansyah said the current government are monitoring and evaluating the amount of business that has paid off the loan and those still in arrears.
''We will evaluate how the amount of credit has been paid off and how many are not. Evaluation results will be presented in a meeting some time to come,'' he said.
Data from Department of Cooperatives, Small and Medium Business of Karimun Regency mention there are as many as 40 businesses that have not paid off his loan.
Non-performing loans amounting to Rp12, 7 billion is one proof that the populist economic improvement programs have not been going well. (kepri online daily)