JAKARTA Feb 16 Loans by commercial banks in
Indonesia expanded 7.9 percent in December compared with a year
earlier, slowing from November's pace of 8.5 percent, the
central bank said on Thursday.
Despite Bank Indonesia's (BI) six cuts last year to its
policy rate, credit growth remains weak due to
increasing volumes of bad debts, bankers say.
Non-performing loans (NPL) in December accounted for 2.9
percent of outstanding loans, according to BI.
Also on Thursday, the central bank announced it was holding
its key rate unchanged at 4.75 percent.
(Reporting by Nilufar Rizki, Hidayat Setiaji and Gayatri
Suroyo; Editing by Richard Borsuk)