Equity Group to Restructure upto KES 92 Billion in Loans on COVID-19
Equity Group has announced the implementation of a Business Continuity Plan (BCP) to protect its customers, staff and business. The Group Board has evaluated the economic impact of the business lock-down, curfew and breakdown of the global supply chains.
In view of the foregoing, the Group has adopted an offensive and defensive approach to protect its customers, staff and business. On the defensive, the 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 move will see the bank offer its clients who have loans and are affected by the COVID-19 crisis a loan restructuring program that could see the bank restructure loans of up to Ksh. 92 Billion for up to Three Years in repayments.
In a statement sent to newsrooms, the board appreciates that 1.2 million people are reported to have lost their jobs, 30% 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 14% reflecting shut down of factories and manufacturing plants.
To these issues, Equity has planned to restructure 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.
The NSE listed bank has vowed to support its clients and customers to survive, recover and thrive by the end of COVID-19 pandemic.
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. – Group MD & CEO James Mwangi
The plan includes principal and interest repayment breaks or reduction of repayment installments. This is intended to ensure our clients focus on cash preservation to ensure survival of their businesses and enterprises.
Equity will also work with its customers to expand their opportunities in the health sector by financing them to manufacture health equipment such as face masks and Personal Protective Equipment (PPEs) locally while helping to create regional supply Chains as well as support food and agriculture to enhance production, processing, distribution and export.
The group will support innovation in ICT and other initiatives to digitize the economy during these harsh economic times.