South Africans received 33.61 billion rand in payment interruptions during Covid-19

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By Mayibongwe Maqhina 39 m ago

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Cape Town – The South African Banking Association (Basa) has granted 33.61 billion rand in interruptions of payment on credit agreements to businesses and individuals in financial difficulty due to Covid-19 since 24 October.

This was revealed by Finance Minister Tito Mboweni when he answered parliamentary questions from deputy DA Hendrik Kruger.

Kruger inquired about the number of SMEs that have been successfully assisted with payment interruptions on credit agreements and under the loan guarantee scheme since September 27.

Kruger also asked about measures the National Treasury has put in place to ensure that more SMMEs receive appropriate and sufficient financial assistance.

Mboweni said that over 83% of individuals and 95% of businesses who requested help with personal and real estate loans, vehicle financing, business mortgages and credit facilities received the help they needed. .

“This cash relief for 2,684,271 credit agreements for eligible individuals and 135,540 businesses was essential to preserving the quality of life, jobs, businesses and the functioning of the economy,” he said. declared.

The minister said that the latest update on the loan guarantee program released by Basa, as of June 19, showed that 13,324 loan applications had been approved for SMEs in the different revenue brackets, for a total of 13,324 loan applications. total rand value of 18.39 billion rand.

“The majority of the approved applications were submitted by SMEs with a turnover of more than or equivalent to 1 million rand but less than 20 million rand,” he said.

Mboweni said the National Treasury did not have information on SMMEs that were denied payment interruptions on credit agreements because they were specific to the bank and covered financial assistance beyond the guarantee program. loan.

He said Basa reported that at least 83% of individuals and 95% of businesses who asked for help received help.

“This implies that 17% of individuals and 5% of business enterprises, respectively, did not receive financial assistance due to the fact that their respective credit facilities were not up to date in terms of credit agreements. repayment.

Mboweni said 28,430 applications for the Covid-19 loan guarantee scheme had been rejected, as of June 19.

“The applications were rejected because, among other things, they did not meet the eligibility criteria for the program, as established by the National Treasury and the South African Reserve Bank, or because they did not meet the criteria of commercial bank risk.

“In some cases, applications were rejected due to outstanding financial records or documents not submitted; or the value of the loan requested was either too high, exceeding the maximum loan amount of R100 million, or the reason for the request was not a Covid-19 issue / distress.


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