Australian banks offer loan relief to small businesses struck by COVID-19

Source: Xinhua | 2020-03-21

Small businesses in Australia struck by the impacts of COVID-19 will be able to defer loan payments for a period of six months under a plan put forward by the country's banks on Friday.

"This is a multi-billion-dollar lifeline for small businesses when they need it most, to help keep the doors open and keep people in jobs," Australian Banking Association chief executive Anna Bligh said.

The move follows an emergency interest rate cut by the Reserve Bank of Australia on Thursday, taking the cash rate to an historical low of 0.25 percent.

According to Bligh, small businesses in Australia hold around 100 billion Australian dollars (58.3 billion U.S. dollars) worth of loans, with the deferments putting 8 billion Australian dollars (4.6 billion U.S. dollars) back into their pockets in the short term.

Additionally three of the county's top banks will offer similar payment deferrals to those struggling to pay mortgages, adding an additional three months to an already announced three-month "repayment holiday" period.

"Our focus is clear - to support our business and personal customers with their financial needs when they need it most," National Australia Bank CEO Ross McEwan said.

"These measures will provide significant relief to businesses and homebuyers over the next six months as we all deal with this unprecedented situation."