The Bank of Australia has provided a lifeline to borrowers who have been hit by the pandemic. Mortgage holders currently suspended on repayment can extend the suspension period for up to four months if necessary.
In order to avoid some kind of public concern about the imminent financial “cliff”, the banking industry has launched a support plan to help those who have difficulty repaying when the initial loan extension plan begins to shrink in September. Affected by the epidemic, this year the bank allowed customers to suspend loan repayment for six months, and small business loans, personal loans and credit cards also received “holidays.” According to the latest data from the Australian Bankers Association (ABA), more than 485,000 home loans have been deferred since March.
At the time this measure was introduced, Australia’s economy performed better than the bank’s expectations when the package was announced in March, but Komorn emphasized that the outlook remains uncertain. Victoria announced on Tuesday night that Melbourne was once again in a blockade due to the recent surge in new crown cases. The six-week period may fear economic recovery.
The Australian Prudential Regulation Authority (APRA) has also supported banks to take action by extending preferential capital requirements to give customers more time. Finance Minister Josh FRydenberg welcomed the bank’s latest policy, saying it would help more Australians survive the new crown crisis.
