Rowley to ask banks for loan deferrals in wake of covid19

As the country braces for an inevitable slowdown of the economy as it attempts to mitigate and stop the spread of the coronavirus disease, covid19, the Prime Minister announced Monday he will ask banks and landlords for deferrals on debts.

“We will ask (banks) to make deferrals on some aspects of payments to those people who are unable to pay because of the virus. Not forgiveness, deferrals.

If you can pay, the deferrals won’t help you but for those unable to pay because of the circumstance of the emergency, we want to ask for deferrals," Dr Rowley said at a media briefing at the Diplomatic Centre in St Ann’s, following an emergency Cabinet meeting to discuss the response to covid19.

He announced that he would chair a Cabinet sub-committee on banking, finance and insurance, which would talk to the banks and let them know that everyone was in this together.

The committee would also request banks consider credit card payments and interest rates. It will also consider tenants and landlords. “I don’t think the landlord will put you on the street tomorrow because the landlord values you as a tenant but if you’ve lost your job and this thing can go on for another three months, we are asking landlords to forebear with tenants but tenants who can pay, pay. Because you won’t get a write-off but a deferral.”

Dr Rowley said experts have advised that the covid19 emergency could last into June, with effects into October. The government is looking at three horizons as it deals with managing the disease: April 20, the first day of the third term of the school year; another in June; and then in October, when the government will review with the banking sector, Ministry of Finance and the Central Bank about the economy.

“(Working) together is what is going to make this task doable, if not easy. We are talking here about sharing the burden. The government in taking all the responsibility that I am talking about here will have serious burdens, but it cant be normal for everybody else.” Among the decisions the government has made is to lockdown borders to non-nationals and order all bars to be closed for 14 days, from midnight Tuesday, while limiting gatherings to 25 people or fewer.

Other members of the sub-committee on banking include Finance Minister Colm Imbert and minister in the ministry, Allyson West, Caribbean Airlines Ltd chairman Ronnie Mohammed, businessman Christian Mouttet and First Citizens CEO Karen Darbasie. Rowley also announced three other committees – one on business and manufacturing, headed by Trade and Industry Minister Paula Gopee-Scoon; another chaired by Social Development Minister Camille Robinson-Regis to oversee social support and job preservation; and an education committee headed by Education Minister Anthony Garcia to monitor schools and places of learning that will remain closed for the next month. That committee will also determine the fate of the Secondary Entrance Examination, originally scheduled for April 2. The Prime Minister said he expected an initial report from the finance committee by 10am Wednesday morning.