“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," Group Chief Executive of Absa, Daniel Mminele, said. 

"This programme, effective on Monday, 30 March 2020, is in line with the principles of an industry agreed approach https://www.banking.org.za/news/banks-respond-to-covid-19/. We urge those of our customers who are 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.”

The group said that eligible customers "in need of short-term liquidity relief" would qualify for the relief programme that applies to Absa’s credit products. 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. Support to corporate and business banking clients will entail solutions based on their unique requirements and operations. Businesses and corporates are encouraged to contact their relationship managers for further details," the group said.

"The programme incorporates a three-month payment relief and allows customers in need of short-term financial relief to reduce their monthly installments. Customers in good standing (with up-to-date accounts), and who have been financially impacted by the pandemic will have the opportunity to opt-in for payment relief, aimed at assisting with cash flow needs."

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

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

“Absa campuses also have small and medium sized enterprises such as hairdressers, pharmacies, florists and coffee shops, among others as commercial tenants. In recognition of the role SME’s play in creating jobs and sustaining livelihoods, these businesses have been granted a rental holiday for the next three months,” said Mminele.

African News Agency