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Absa outlines how it will provide relief from lockdown to customers in distress

| Economic factors

Absa finally broke its silence on how it was going to provide distressed customers relief amidst the Covid-19 financial crises, which would be implemented today, while Standard Bank announced a second wave of relief measures.

This after Standard Bank, Nedbank and FNB a week ago announced debt relief measures a week ago.

 

Absa said in a statement yesterday that the programme incorporated a three-month payment relief and allowed customers in need of short-term financial relief to reduce their monthly instalments.

Customers in good standing, with up-to-date accounts, and who had been financially impacted by the pandemic would have the opportunity to opt-in for payment relief, aimed at assisting with cash flow needs.

This meant the programme would give customers the opportunity to either continue paying if they are in a position to, to pay reduced instalments by agreement with the bank or to defer payments for a period of three months.

Daniel Mminele, the group chief executive of Absa, said :“We realise that this is a difficult time for our customers and businesses whose financial means are being negatively affected. After careful consideration and engagements with regulators, we are pleased to introduce a comprehensive customer, business and corporate relief programme.”

He urged customers who were able to continue making their payments, to do so. “This will enable us to extend these measures to many more who are not in a similar position,” said Mminele.

Eligible customers in need of short-term liquidity relief would qualify for the relief programme that applies to Absa’s credit products, the bank said.

“These relief measures apply to Absa’s corporate, wealth, business bank, private bank and retail customers. Crucially, this programme will not attract additional administration fees for customers,” Absa said.

Absa said support to corporate and business banking clients would entail solutions based on their unique requirements and operations, while businesses and corporates are encouraged to contact their relationship managers for further details.

Absa said relevant agreements would be adjusted, by revising the loan period and capitalising interest during the relief period.

Furthermore, Mminele said Absa campuses, which had small and medium-sized enterprises such as hairdressers, pharmacies, florists and coffee shops, among others as commercial tenants had been granted a rental holiday for the next three months.

Meanwhile, on Sunday Standard Bank also unveiled additional relief measures.

It said in a statement the payment reprieve was aimed at easing the financial burden of customers earning R7500 or less, who would receive three-month instalment relief if they were not in arrears on any of their accounts as from tomorrow.

BUSINESS REPORT 

 

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