The Australian Banking Association (ABA) has announced the banks’ readiness to support the JobKeeper program while businesses and their employees are waiting for the first payments from the scheme.
The upcoming programme would allow businesses to use payment as a basis to seek credit and pay their employees before the scheme would make its first payments.
“Banks stand shoulder to shoulder with the Australian Government and businesses across the country to help us emerge on the other side of this crisis strong and ready to rebuild,” the ABA’s chief executive, Anna Bligh, said.
“As many businesses face a number of weeks of little or no cashflow before they receive payments under the Government’s JobKeeper program, Australian banks may be able to help.”
She went on to explain that there were a number of businesses which were eligible for credit, such as an extension to their overdraft, which could offer them cashflow to pay their staff.
“Each business will be assessed on a case by case basis to determine the assistance that may be appropriate to their circumstances,” she assured.
Businesses affected by the COVID-19 crisis should contact their bank to access these initiatives and discuss what support is available to them including options to defer loan repayments for up to six months.
Comments
The banks are making no sacrifices in reality. They are actually raking it in right now. Capitalised interest on loans = more revenue. People needing to use credit cards = more revenue at massive interest rates, no cuts announced to interest rates on business or personal credit cards despite cash rate lowering. Sending emails to home loan customers saying if they are ahead on their repayments they can drop the payments, sounds lovely, but equals more revenue. Where are the actual sacrifices Anna Bligh?
If the banks said they would provide this short term relief whilst waiting for JobKeeper at a reduced or zero interest rate, that would be helping.
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