Pakistani Call girls in Sharjah 0505086370 Sharjah Call girls
Media statement covid-19
1. MEDIA STATEMENT
UPDATE ON COVID-19LOAN GUARANTEE SCHEME
The Covid-19Loan Guarantee Scheme wassetup to helpease some pressure off qualifyingbusinesses
negativelyaffectedbyloweconomicactivityfollowingthe global lockdownimposedtoreduce the
spreadof COVID-19.It has beenreviewedtomake iteasiertoaccess.Some of the changesinclude that
bankcreditassessmentsandloanapprovalswill be more discretionaryandlessrestrictive,inline with
the objectivesof the scheme.Inaddition,clientsare now beingable toaccessthe loanovera longer
period.
The Covid-19Loan Guarantee Scheme providesloans,substantiallyguaranteedbygovernmentbutwith
some of the risksharedbybanks,to eligiblebusinessestoassistthemduringthe COVID-19pandemic.
Fundsborrowedfromthisscheme,throughtheirbanks,canbe usedforoperational expenses,suchas
salaries,rentandlease agreementsandcontractswithsuppliers.
The loansare grantedat a preferential rate (prime) andrepaymentmaybe deferredforamaximumof
one yearafter takingoutthe loan. Businesseswill thenbe requiredtorepaythe loanoverfive years.
Governmentandcommercial banksare sharingthe riskof non-repaymentof these loans.The National
TreasuryinitiallyprovidedaR100 billionguaranteetoparticipatingbanksthroughthe SouthAfrican
Reserve Bank,withthe optiontoextendthe scheme toR200 billionif required.Governmentisengaging
withnon-banklendersinordertopossiblyextendthe scheme.
Followingareview of the scheme,the followingchangesare announced:
• Businessrestartloanswillnowbe available,toassistbusinessesthatare able tobegin operatingas
the economyopensup.
• Bankcreditassessmentsandloanapprovalswillbe more discretionaryandless restrictive,inlinewith
the objectivesof the scheme.Banksmayuse theirdiscretionon financial informationrequired,for
example bankorfinancial statements,where audited statementsare notavailable.Suretyshipsor
2. guaranteesmayalsobe required.The provisionsof the NationalCreditActandFinancial Intelligence
Centre Actremain applicable.
Enquiries:CommunicationsUnitEmail:media@treasury.gov.za Tel:(012) 315 5046
• Clientscannowaccessthe loan overa longerperiod.The draw downperiodhasbeen extendedfrom
three monthstoa maximumof six months.Forexample,aR6 million loancanbe drawn downoversix
months,at R1 millionamonthif the business qualifies.The size of the loanisstill calculatedon
operatingexpenses.
• The interestandcapital repaymentholidayhasbeenextended.The interestandcapital repayment
holidayhasbeenextendedfromthree monthstoa maximumof six months afterthe final draw down.
For example,inthe case of the same R6 millionloan,drawn downatR1 millionamonth forsix months,
repaymentswillonlybe requiredfrommonth 13.
• The turnovercap has beenreplacedwithamaximumloanamountof R100 million. Banksmayalso
provide syndicatedloansforloanslargerthanR50 million.
• The testfor goodstandinghas beenmade easier.Thishasnow movedbackto31 December2019
from29 February2020, whichwill accommodate firmswhichwere alreadyexperiencingcash-flow
problemsinFebruary.
• Sole proprietorshipsare nowexplicitlyincluded.Forsole proprietorshipsandsmall companies,salary-
like paymentstothe owners(drawings) are includedinthe use of proceeds.Security,suretyshipsor
guaranteesare not explicitlyrequired.
Eligible businessesshouldcontacttheirprimaryormainbankerforfurtherinformationonthe scheme
and the qualifyingcriteria.
3. Whilstthisscheme operatesthroughbankswillingtotake some of the risksof lendingtoclient
companiesindistress,Governmentisalsoexploringthe optionof workingwithnon-banklenderswilling
to share the risksof lendingtotheirclientcompaniesindistress.
Ends
Date: 26 July2020
Contacts:
National Treasury:Ms CleoMosana,Headof Communications,media@treasury.gov.za
SARB: Ms ThorayaPandy,Head of Communications,media@resbank.co.za
BASA: Dr Y AbbaOmar,SGM: Strategyand Communications,(