To give businesses some cash-flow relief the Government will do the following:
- Guarantee loans by commercial banks to businesses mostly affected by COVID-19
- Give eligible businesses affected by COVID-19 access to credit to support ongoing operations in conditions where credit becomes more difficult to obtain
- Give tax concessions to businesses in eligible sectors.
The Ministry of Finance and Economic Development will provide more details on the criteria and guidelines for implementation of these particular measures.
Furthermore, to facilitate doing business and keep the economy running:
- All Government institutions will pay Government Purchase Orders (GPOs) within five (5) days and parastatals to will pay within 24 hours.
- The efficiency of procurement processes will be improved
- Government will pay all outstanding arrears for invoices within two (2) weeks and extended the validity period for GPOs
- VAT refunds to businesses will be expedited to assist with cash flow.
Click here to watch the speech by, outlining all the various interventions the government has put in place.
In the financial services industry;
- Banks have agreed to offer restructuring of loan facilities through which each bank will consider each case within their credit policy and parameters. This will include owner-occupied residential property mortgages and motor vehicle loans.
- All commercial banks will offer a payment holiday for three (3) months with the option to extend to six (6) months to the affected sectors.
- Regular payment obligations including life insurance premium payment, retirement fund contributions and loan instalments will be restructured and rescheduled to offer relief for at least three months to COVID-19 affected people subject to individual policies.