Abstract
A syndicated loan is a form of credit extended by more than one Bank Perkreditan Rakyat (BPR) to finance the needs of a single debtor. In Batam City, syndicated loans have become a common practice among BPRs to accommodate debtors requiring large-scale financing. The primary objective of syndicated loans is to ensure compliance with the regulations set by Bank Indonesia and the Otoritas Jasa Keuangan (OJK). In the implementation of syndicated loans, one bank assumes the role of the lead bank, which is the principal bank responsible for managing the syndicated loan. The lead bank’s duties include managing the financing process, conducting debtor analysis, and overseeing the debtor’s compliance with syndicated loan obligations. This study aims to analyze the implementation of dispute resolution mechanisms for syndicated loans in cases of debtor default and the legal protection afforded to lead banks during such proceedings. The research employs an empirical method to provide a practical overview of the resolution of syndicated loan disputes in real-world settings. The findings reveal that disputes arising from debtor defaults in syndicated loans are effectively resolved through negotiation. In these proceedings, the lead bank actively facilitates open communication with the debtor to find optimal solutions, enabling the debtor to fulfill their obligations. Additionally, the lead bank is afforded legal protection as stipulated in the syndicated loan agreement executed prior to the disbursement of the loan. This legal protection proves to be highly effective in mitigating potential risks associated with debtor default, thereby safeguarding the lead bank from financial losses. Consequently, the implementation of syndicated loans in Batam City not only streamlines access to financing for debtors but also ensures legal certainty for all parties involved.
Published Version
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