Banks Offer Economic Coronavirus Relief To Businesses

To help businesses, communities and retail clients impacted by COVID-19, or the coronavirus, Asian financial services group DBS said in an announcement that it will roll out liquidity relief, among other measures.

The bank said it will offer a “six-month principal repayment moratorium” for small to medium-sized business (SMB) property loans. In addition, it will provide an extension of import facilities for a maximum of 60 days to serve as immediate cash flow support for companies that are contending with interruptions from the coronavirus.

“These initiatives will be available upon application to customers with good repayment histories,” the bank stated.

In addition, the bank said retail customers who have solid repayment histories can ask for a “principal repayment moratorium for mortgage loans” for six months. The institution said more details would be shared on its website beginning Feb. 17.

Beyond DBS, United Overseas Bank recently announced a package that dedicates $3 billion for corporate clients that need assistance in mitigating the impact of the outbreak on their companies, The Straits Times reported. Standard Chartered also noted that affected business banking clients can waive late charges as well as related fees, such as restructuring costs, for a maximum of six months.

In separate news, more than 300 Chinese companies are looking for bank loans totaling a minimum of $8.2 billion to help assuage the impact of the coronavirus. The epidemic has killed over 900 people in the country and infected over 40,000, while authorities have temporarily halted transportation links, closed off cities, and shut down facilities where crowds gather.

Ride-hailing firm Didi Chuxing Technology is among one of the potential borrowers in addition to Meituan Dianping, the food delivery company. Meituan Dianping, in one case, was reportedly seeking 4 billion yuan ($572 million) to, in part, help finance complimentary food as well as deliveries to medical staff in the outbreak’s epicenter.