Banks need to get creative with Covid-19 relief, says FNB’s Jacques Celliers
SA’s banks began introducing relief measures, including three-month payment breaks and rescheduled loans, as the lockdown started
After coming up with range debt relief measures, such as payment holidays and low-interest loans for recession-hit consumers, banks will need to draw up alternative measures to stave off a tidal wave of looming credit defaults, Jacques Celliers, CEO of FNB has said.
“We are now going into a phase where we need to activate the alternative mechanisms, longer term solutions. You can’t solve some of these problems with just another loan, they only serve the purpose [of a] a short-term activity that we started off with.”