South Africa extends loans for small & medium-sized businesses amid coronavirus pandemic

According to reports, South Africa has doubled duration of loans by making it six months to small and medium sized businesses which are hit by coronavirus pandemic. This will help m survive recession that pandemic has brought as its consequence. government has also me or changes to make credit easier to access. 

South Africa battles Coronavirus

In April, President Cyril Ramaphosa anunced a 200 billion loan scheme to help businesses. This was a part of stimulus measure to stop ecomy from coming to a standstill due to coronavirus pandemic. purpose of loan was to meet urgent requirements such as salaries and rents. Contractual obligations were also me a part of this loan. 

South Africa’s ecomy h come to a standstill when government imposed lockdown to fight coronavirus pandemic. This h a direct impact on medium and small sized businesses. businesses lost almost all ir revenues and many struggled to recover even after lockdown was lifted.

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According to treasury, new changes that were introduced also included “bank credit assessments and loan approvals more discretionary and less restrictive”. y have also extended drawdown period and interest and capital repayment holiday to six from three months. Also, government replaced 300 million rand turver cap with a maximum loan amount of 100 million rand.

South Africa is country with world’s fifth highest number of COVID-19. Its response to COVID-19 cases is flawed by corruption allegations around its historic $26 billion ecomic relief pack. President Cyril Ramaphosa has anunced a wide-ranging investigation into same. South Africa is seen as best-prepared country in sub-Saharan Africa to battle vel coronavirus. However, years of uncontrolled corruption have weakened institutions, including health system.

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