The recovery of the South African economy was critical for the improved bankability of the country’s tourism businesses, the Banking Association of South Africa (Basa) said yesterday.
MEC slams poor roll-out of relief funds
By Vernon Mchunu
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DURBAN - KWAZULU-Natal Economic Development, Tourism and Environmental Affairs (EDTEA) MEC Ravi Pillay has blamed the application criteria for the poor roll-out of the Loan Guaranteed Scheme (LGS).
The LGS was aimed at bringing relief to the small business sector.
Pillay was reacting to the announcement that the scheme – first introduced in April last year as part of an Economic Stimulus package to keep struggling businesses afloat in the wake of the Covid-19 economic crunch – would remain available for another three months.
The businesses whose resilience depended on securing a bank loan would continue to be guaranteed approval under favourable conditions until July 11, according to a joint statement issued by the National Treasury, the Reserve Bank and the Banking Association of South Africa (Basa).
Standard Bank raises alarm on loan-to-grant proposal SA’s largest lender says it’s open to talks on how to restructure the R200bn covid relief program but it rejects suggestions to swap the loans to grants 02 April 2021 - 11:16 Roxanne Henderson Standard Bank CEO Sim Tshabalala. Picture: MASI LOSI
Standard Bank Group has raised the alarm about proposals to revive a faltering government-backed credit program designed to aid South African businesses battered by Covid-19.
While SA’s largest lender is open to talks on how to restructure the R200bn program to drive up demand, it rejects suggestions to swap into grants the loans that have been provided, CEO Sim Tshabalala said in the bank’s annual report.
Anthea Jeffery of the Institute of Race Relations is a leading authority on land expropriation (or EWC – expropriation without compensation). She has been advocating against land expropriation, spelling out the implications this may have on the already fragile South African economy. In an article published on BizNews earlier this year, Jeffery commented that ‘the mere threat of widespread expropriation, especially for ‘nil’ compensation, is enough to deter most direct investment and stall any prospect of economic recovery. Many South Africans are worried about what it may mean for their personal property, with fears of homes and assets being taken without anything in exchange. Below, the IRR’s Head of Policy research notes there is a ‘deep divide’ on the amendment bill. ‘The Ad Hoc invited several organisations to make oral submissions to it – but left out the IRR and many others that should have been included’. This article was first published on the Daily Friend
The battle of the banks hits a high in digital Covid economy
Banks responded rapidly and empathetically to their account holders financial crisis when the country went into hard lockdown around this time last year. According to a Banking Association of South Africa (Basa) report banks had provided over R50bn in financial relief - R33,61bn in payment breaks on credit agreements and R16,71bn under the loan guarantee scheme - to South African businesses and individuals.
123rf.comSA s banks earned a significant amount of goodwill and loyalty with their rapid and wide-scale debt-relief responses at the time. However, they will need to work hard to leverage this position as a protracted pandemic tests every facet of customer resilience and loyalty in a tough and uncertain economy.