In the midst of an ongoing outbreak, Australian lenders help lighten the load for affected small businesses which are estimated to house 5 million workers in the country.
The relief package will apply to more than A$100 billion of existing small business loans and provides a 6-month deferral of loan payments for those affected by the coronavirus, according to the Australian Banking Association. This follows recent collaboration between banks, the Australian treasurer and government to identify support measures.
This could put as much as $4.6 billion back into the pockets of small businesses as they battle through these difficult times,» said the association’s CEO Anna Bligh in a statement. This is a multi-billion-dollar lifeline for small businesses when they need it most, to help keep the doors open and keep people in jobs.
In a relatively rare scenario, banks globally have an opportunity to play the role of financial rescuer after the last crisis when large parts of the industry benefited from taxpayer-backed bailouts. Outside of Australia, for example, Swiss financial giant Credit Suisse’s chief executive had suggested co-establishing a lending fund targeting small businesses in the country alongside fellow giant UBS.
While this is first and foremost a health crisis, this pandemic has begun to have serious impacts across the economy, with small businesses beginning to feel the devastating effects, Bligh added. Australia’s banks have supported the country through difficult times in the past and continue to do so.