Government and bank unite against COVID-19

The $6.25 billion Finance Guarantee Scheme for small and medium-sized businesses has received praise from BusinessNZ.

BusinessNZ chief executive Kirk Hope says the scheme is a great example of collaboration in a time of crisis.

“It’s great to see the Government, retail banks and the Reserve Bank all coming together to protect Kiwis and unite against Covid-19. This will encourage banks to lend to businesses struggling with the fallout from these very challenging times.”

The Reserve Bank has agreed to reduce banks core funding ratios from 75% to 50%, further helping banks to make credit available.

The scheme will include a limit of $500,000 per loan and will apply to firms with annual turnover of between $250,000-$80 million.

The government has also announced a six-month mortgage holiday for Kiwis affected by Covid-19 that has been welcomed by the BusinessNZ network.

“The latest support package will help take some of the weight off the shoulders of affected businesses,” Mr Hope says.