Coronavirus: Nedbank offers to help struggling clients, with debt holidays or more credit

Coronavirus: Nedbank offers to help struggling clients, with debt holidays or more credit

Following Standard Bank’s decision to extend a three-month debt repayment holiday to students and all businesses with a turnover below R20 million per year, Nedbank says it will offer all clients “individual solutions to cashflow challenges” due to the coronavirus.

This includes that they will be able to halt debt repayments (or part thereof) for a “suitable” period. Alternatively, their loan periods may be extended or they could get more credit to manage short term cashflow shortfalls.

“We are committed to supporting our clients during this time of uncertainty and have a number of solutions available to assist clients in good standing who are impacted by this pandemic,” the bank said in a statement.

Clients are encouraged to contact the bank telephonically.

“We continue to work with our clients, regulators, industry bodies and government to mitigate the impact of Covid-19 and will provide further guidance to clients on these matters as they evolve.”

President Cyril Ramaphosa met with business leaders, the SA Revenue Service and financial regulators over the weekend to shape a plan of financial measures that is expected to be announced on Monday.

The coronavirus crisis is having a harsh impact on domestic businesses, which are facing the fall-out of emergency measures including the cancellation of events, the closure of public spaces and restrictions on travel and trade. According to the Reserve Bank’s forecast this week, the domestic economy will shrink by 0.2% this year, while some economists believe that this may be too optimistic.