Economic climate curbs appetite for loan scheme, Basa says
Just R17.49bn has been extended under the Covid-19 loan guarantee scheme amid poor growth prospects and weak business confidence
07 December 2020 - 18:12
Business owners remain unwilling to take on more debt under the Covid-19 loan guarantee scheme amid a bleak economic climate, with banks only expected to extend R24.4bn by January based on current trends, the Banking Association SA (Basa) said on Monday.
Demand for the scheme — a pillar of the government’s economic stimulus package in response to the Covid-19 crisis for which it earmarked R200bn in financing — remains below original expectations, Basa said largely due to the prevailing weakness in business and economic conditions...
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