Ready to assist

Banks provision $100m for bad debts

COMMERCIAL banks in the country have provided $3.5 billion worth of repayment holidays, loan restructures and interest only facilities to its customers.

Association of Banks in Fiji chairman Rakesh Ram made the statement at the Fiji Chamber of Commerce and Industry Seminar on Business Outlook – 2021 and Beyond, Challenges of Working with COVID-19 at the Grand Pacific Hotel on Monday.

Mr Ram said the commercial banks in the country were ready to further assist those affected directly during this COVID-19 pandemic crisis.

He said the repayment holidays and other arrangements for customers would end on December 31 but the banks were prepared to provide further assistance.

According to Mr Ram as of September this year the commercial banks provision for doubtful debts and bad debts stood at $100 million.

He said despite the crisis situation the banks’ lending had grown by $7b with $300m lending to small and medium enterprises.

“The SMEs are a segment that is suffering the most during this situation which also meant that it was the segment that will possibly have the highest number of bad debts.”