The government and the banking sector are looking to establish a "Funding for Lending" scheme in which the government would back the banks to take on riskier lending to help customers survive the Covid-19 crisis.

The scheme - which could be in the form of a government guarantee for the banks - would allow the banks to assist distressed businesses they would not normally be able to lend to, because the government would share some of the losses that might be incurred if these customers default.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now