Private sector needs urgent support from banks – FBC News
The Fiji Chamber of Commerce says it will meet with the Association of Banks next week to seek support for the private sector.
Chamber President Dr. Nur Bano Ali says more than eighty percent of businesses around Fiji are suffering from the second wave of the pandemic and hopes are that banks will help by reducing interest rates for loans.
Ali says the banks were helpful last year by relaxing re-payment deadlines and support are also needed to accommodate the reality that most of them have been closed for more than ten weeks.
“Effectively they expecting a similar kind of relief where the banks will assist again in terms of payment deferment, and additionally what they expect is a reduction in the cost of finance this time.”
Ali says they hope to see some goodwill from the banking sector.
“We all need to support each other, the banks need to support its business so they can save some interest cost then they pass it on to their employees, then that passes on to other businesses, other suppliers.”
Meanwhile, Minister for Economy Aiyaz Sayed-Khaiyum earlier this week indicated that liquidity is high and commercial banks should consider appropriate lending rates.
“So if your liquidity level is high which is high at the moment given the situation, our reserves have exceeded $3 billion, then that gives confidence to the financial institutions to be able to then have a reflection on the interest rates.”
Questions have been sent to the Association of Banks in Fiji and a response is expected later.
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