Below is a media release from the Australian Banking Association. We will update this post with our CEO's comments as soon as possible.
"Australia’s banks will extend the six month deferral of loans, building on the ABA’s Small Business Relief Package, to 30,000 more businesses across the country.
This support now extends to 98% of all businesses with a loan from an Australian bank.
Businesses with total business loan facilities of up to $10 million (up from the $3 million small business threshold) will now be able to defer repayments for loans attached to their business for six months. These businesses are generally much larger and employ a greater number of people.
This extension of support will apply to an additional $100 billion of business loans. Combined with measures already announced, it will mean a six-month deferral of loan payments will apply to up to $250 billion worth of loans, with extra cash available to 425,000 businesses to cope with the crisis during the COVID-19 pandemic.
During this period banks have also agreed to not enforce business loans for non-financial breaches of the loan contract (such as changes in valuations).
The new measures will apply in all sectors of the economy, and on an opt-in basis, under the conditions that:
For commercial property landlords, they provide an undertaking to the bank that for the period of the interest capitalisation, they will not terminate leases or evict current tenants for rent arrears as a result of COVID19
the customer has advised that its business is affected by COVID-19
the customer was current in terms of existing facilities 90 days prior to applying
interest is capitalised – meaning either the term of the loan is extended or payments are increased after the deferral period."
Read the rest of the media release here: