PT Garuda Indonesia (Persero) Tbk and PT Bank Mandiri (BMRI) have agreed to extend the loan agreement addendum and treasury line agreement addendum from 16 December 2020-31 March 2021 to 30 March 2021-31 December 2021.

This extension applies to non-cash loan facilities - customized IGF and treasury line facilities implemented in stages since 2016.

Apart from term changes, the amount of treasury line facilities also changed from US$300 million to US$150 million.

Meanwhile, the company's basic consideration in carrying out the transaction is to support the company's working capital needs and is not limited to purchasing fuel, supporting its main activities.

"There is a need for the company to implement hedging transactions as an effort to mitigate the company's risk that comes from movements in foreign currency exchange rates," said Garuda's Director of Finance and Risk Management, Prasetio, in the IDX disclosure of information quoted on Monday (5/4).

Interest and guarantees do not change, including IGF non-cash loan facilities, which reach Rp2.4 trillion.