Australian banks request approval for a loan deferral program


Alice Uribe

According to the Australian Banking Association, banks are seeking urgent permission from Australia’s competition regulator to resume a loan deferral program amid the escalating Covid-19 outbreak in Sydney.

The national package will be available to borrowers heavily impacted by current locks or recovering from recent locks, regardless of geographic location or industry.

Australia’s banks have largely exhausted loan deferrals that were introduced in 2020 during the Covid-19 outbreak, but their return comes as Sydney battles the infectious strain of Delta.

“This pandemic demonstrates why strong and stable banks are so important to a country’s economy. Banks are committed to doing everything in their power to protect their customers from the impact of these recent blockages, ”said ABA CEO Anna Bligh.

For home loans, a number of support measures will be envisaged, including monthly deferrals, and up to 98% of small businesses will be able to access three-month repayment periods with corresponding loan extensions.

ABA said this would only be for loans that are repaid before the date or as part of a payment program. “Banks are also ready to support larger enterprises, and their assessment will be assessed on an individual basis,” – said in a statement ABA.

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