JAKARTA. The total value of credit guarantee obligations in relation to capital (gearing ratio) for credit guarantee institutions has increased. The latest data from the Capital Market and Financial Institution Supervisory Agency revealed that as of April 2011, the average gearing ratio for productive guarantee businesses had risen to 9.07 times.
Meanwhile, in March, it was 7.06 times. In January and February, the gearing ratio stood at only 6.53 times and 6.89 times, respectively.
Hendry Nur Irianto, Head of Finance Division at PT Jaminan Kredit Indonesia (Jamkrindo), stated that Jamkrindo's gearing ratio increased to 9.74 times in April, compared to 7.45 times in the previous month. Even in May, Jamkrindo's gearing ratio was only 7.03 times.
The same trend was observed in the debt ratio for non-productive businesses. The debt-to-equity ratio in non-productive businesses increased to 24.72 times in April, up from 19.04 times in March.
For example, Jamkrindo's gearing ratio for non-productive businesses reached 26.70 times in April. In March, the ratio was only 20.22 times. "If there is a repayment of guarantee payments, the gearing ratio automatically decreases because the outstanding guarantees become smaller," said Hendry on Thursday (June 30).
The larger the guarantee obligation, the higher the gearing ratio. According to Hendry, Jamkrindo's gearing ratio typically ranges between seven and eight times.
From the total guarantee industry figures, Jamkrindo accounts for 95% of the industry's total guarantees. The remaining portion belongs to PT Penjaminan Kredit Pengusaha Indonesia, PT Jamkrida Jatim, and PT Jamkrida Bali Mandara.
For instance, PT Jamkrida Jatim recorded a total credit guarantee value of Rp 105 billion last year. As of May this year, Jamkrida Jatim's guarantee value was only Rp 78 billion. As a reminder, as of April, Jamkrindo's guarantee commitments had reached Rp 15.9 trillion.
The growth of assets in the guarantee industry in April reached 7.45% compared to the previous month. The total assets in April 2011 amounted to Rp 3.4 trillion. Meanwhile, asset growth in February and March was recorded at 1.85% and 1.76%, respectively.
Source: Kontan Online