Equity restructures Ksh92 billion loans to offer customers relief against COVID-19 pandemic

0

Equity Bank has restructured loans of up to Ksh92 billion with the aim of easing customer’s burden on their businesses caused by the novel Coronavirus pandemic.

The lender said that it had initiated a personalized approach in restructuring customer loans to help them navigate through the COVID-19 pandemic that has evolved to a socio-economic crisis.

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 relief will include principal and interest repayment breaks or reduction of repayment instalments intended to ensure that clients focus on cash preservation to ensure survival of their businesses and enterprises.  “We know this crisis is not going away anytime soon since the health crisis has not been resolved. Our customers have been loyal and faithful, and we owe them who we are today. Our focus has changed from financial performance and profitability to survival, sustainability and recoveries of our customers who are the reason we exist,” added Dr. Mwangi.

The lender has also offered to work with its customers to expand their opportunities in the health sector by financing them to manufacture health requirements such as face masks and Personal Protective Equipment (PPEs) locally while helping create regional supply Chains. The Bank will support food and agriculture to enhance production, processing, distribution and export as well as support innovation in ICT and other initiatives to digitize the economy. 

“Equity Group will play to its capital strength, balance sheet agility and liquidity to support a long-term view and walk with our customers throughout the crisis.  We want to give every client a chance to turn the crisis into an opportunity to thrive.” said Dr Mwangi.

He also appealed to customers to exercise caution in their decisions in order to preserve their business capital during this period of uncertainty, saying that businesses will have to take hard but critical decisions in order to sail through the crisis. In addition, he challenged the entrepreneurs to be innovative in looking for the opportunities that the crisis presents to re-imagine their business models and operating strategies especially adoption of digital technologies.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More