Indonesia central bank relaxes lending rules to complement rate cut

JAKARTA: Indonesia's central bank will remove a downpayment requirement for vehicle loans and some mortgages from March until the end of the year, Governor Perry Warjiyo said on Thursday, after announcing a 25 basis point cut in interest rates.

The relaxation of downpayment rules for vehicle loans should be implemented by banks while still maintaining prudential standards, Warjiyo said. He said the rules for mortgages only applied for banks with specified non-performing loan levels.