Equity Group has announced that it will offer its clients who have loans and are affected by the COVID-19 crisis a loan restructuring program. The bank has promised to restructure loans of up to Ksh. 92 Billion for up to Three Years.
The plan by Equity is a Business Continuity Plan (BCP) to protect its customers, staff and business. The Group Board has evaluated the economic impact of the business lock down, curfew and breakdown of the global supply chains.
The Board has appreciated that 1.2 million people are reported to have lost their jobs, 30% of tenants have challenges paying their rents for the month of April while the informal sector has stagnated. Power consumption and demand is reported to have fallen by 14% reflecting shut down of factories and manufacturing plants.
In view of these issues, the group planned to restructure customer loans to help them navigate through the COVID-19 pandemic that has evolved to a socio-economic crisis. The situation has affected large business ecosystems and industries such as travel, tourism, manufacturing, trade and commerce, construction, oil and gas as well agriculture and education.
Equity Group will support its clients and customers to survive, recover and thrive by the end of COVID-19 pandemic. Clients who can demonstrate the impact of Covid-19 on their businesses and soundness of their business model in the new normal will get reprieve of loan rescheduling and refinancing with up to an additional three years of repayment. “We have been on a journey with our customers and wish to go far by walking together with them. We believe that by supporting our existing clients, we shall help them keep their supply chains open and functional while maintaining their employees on their jobs,” Said Dr. Mwangi, the Group managing Director & CEO and clarified that the approach has also taken into consideration regulatory and reporting requirements.
The plan includes principal and interest repayment breaks or reduction of repayment installments. This is intended to ensure our clients focus on cash preservation to ensure survival of their businesses and enterprises.
Equity will also work with its customers to expand their opportunities in the health sector by financing them to manufacture health equipment such as face masks and Personal Protective Equipment (PPEs) locally while helping to create regional supply Chains. Equity Group will support food and agriculture to enhance production, processing, distribution and export. The group will support innovation in ICT and other initiatives to digitize the economy.