Business

Banks extend hardship assistance for businesses

May 29, 2021 11:55 am

The Association of Banks in Fiji says members have voluntarily extended the hardship assistance to businesses on a case-by-case basis.

Association of Banks Chair, Rakesh Ram, says the assistance which is now extended until September will include interest and principal repayment deferment, restructures, and short-term funding for customers who are facing financial hardship during this challenging time.

Ram says members will continue to support their customers based on individual needs.

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Association of Banks Chair, Rakesh Ram

He also says the recent RBF statistics reveal that Commercial Banks’ new lending has increased by over $1billion during the last 12 months under the COVID environment, however, the Banks’ average lending rates are on a continuous decline.

He says this is encouraging in terms of supporting businesses to meet their cost of borrowing and clear confirmation that Banks have been passing the benefit of reduced interest cost to the customers.

Ram adds that Banks are also commercial businesses and the increase in high-risk loans has had a significant impact on their operations and financial performance.

He says this has resulted in a huge increase in the level of bad and doubtful provisions plus write-offs.

The Association of Banks has also welcomed the record liquidity levels in the market, which confirm Fiji’s strong banking and financial sector.

The Association of Banks is expected to meet with the Fiji Chamber of Commerce next week in relation to the private sector’s urge for support.