The Government of Guyana has announced measures geared towards easing the financial burden on citizens in the wake of the COVID-19 pandemic.
According to newly appointed President, Dr Irfaan Ali an agreement has been reached with the local banking sector to extend the moratorium on loan payments until the end of the year and to cut interest rates.
“Commercial banks agreed to offer general concessional reductions of interest rates of 1% and up to 2% on customer loans below GUY$10 million until December 30, 2020. The existing lending rate ranges between 6.5% and 16%. Some commercial banks have agreed to apply special treatment to the interest accrued during the moratorium period,” he said.
“Commercial banks have agreed to waive all bank charges, including ATM and merchant bank charges to encourage more out-of-bank transactions, as well as charges for transactions by senior citizens.”
The President added that these measures will not impact the soundness of the banking sector. Ali also announced that the Bank of Guyana will relax certain requirements that would allow banks to cushion their losses and increase liquidity by GUY$9.4 billion. (JO)
Extract from the CARICOM Business Newsletter, vol. 3 No 35
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