Equity Group has restructured loans that customers have to up to three years, valued at sh92 billion, in a bid to cushion them from the effects of COVID-19.
Equity Group is taking a personalized approach in restructuring 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.
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. James Mwangi, the Group CEO.
He added that the gesture is intended to ensure their clients focus on cash preservation to ensure survival of their businesses and enterprises. He added that their focus has changed from financial performance and profitability to survival, sustainability and recoveries of their customers who are the reason they exist.
The bank noted that 1.2 million people are reported to have lost their jobs, a third 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 a quarter reflecting shut down of factories and manufacturing plants.
A statement from the Group noted that 97 per cent of global aviation business is shut down while 87 per cent of hotel business has been lost. In countries like United States of America (USA), 33 million workers have lost their jobs while 30 million workers have lost their jobs in Western Europe.
Most factories in the manufacturing sector have shut down adversely affecting global supply chains.
The accommodation includes principal and/or interest repayment breaks or reduction of repayment installments.