JOHANNESBURG (Reuters) – South Africa has doubled to 6 months the time period of loans to small and medium-sized companies to assist them survive the COVID-19 recession and made different modifications to make the credit score simpler to entry, the treasury stated on Sunday.
President Cyril Ramaphosa introduced the 200 billion rand ($12.00 billion) loan scheme in April to assist companies, as a part of stimulus measures to minimize the pandemic influence on South Africa’s already shrinking economic system.
The loans are meant to satisfy pressing necessities, reminiscent of salaries, rents and contractual obligations.
A lot of South Africa’s small and medium-sized companies had been thrown into disarray when the federal government launched a lockdown on the finish of March to attempt to comprise the unfold of the novel coronavirus that causes COVID-19.
They misplaced a lot of their income however nonetheless confronted fastened prices, and lots of have struggled to recuperate even because the lockdown lifted.
Sunday’s modifications to the scheme embrace making “bank credit score assessments and loan approvals extra discretionary and fewer restrictive,” the treasury stated in an announcement.
They lengthen the draw-down interval and the curiosity and capital reimbursement vacation to 6 from three months and substitute the 300 million rand turnover cap with a most loan quantity of 100 million rand.
($1 = 16.6705 rand)
(Reporting by Tim Cocks; modifying by Barbara Lewis)