DOMA calls for debt relief over covid19 crisis

FINANCIAL INSTITUTIONS and landlords should consider giving businesses affected by the Prime Minister’s announced restrictions on non-essential operations debt relief rather than just deferrals.

Downtown Owners and Merchants Association (DOMA) president Gregory Aboud told Newsday in a phone call Thursday that deferral is only a transfer of the burden businesses, who are losing almost all, if not all of their income and sales, are facing at this time.

“The issue that presents the greatest challenges to the business community at this time if indeed non-essential services are shut down will be the question of loan payments and interest payments due to financial institutions and also the question of rent for commercial premises if the business happens to be a tenant," he said.

"In both cases, it is in our view, the responsibility of the financial institutions and of landlords to consider forgiveness as a form of relief from the burden of debt and the burden of rent.”

Lost revenue is not being deferred to another month, he said, so it is difficult to imagine how a deferral of loan and interest payments can be seen as true assistance to the business community.

By the same token, landlords have an obligation to balance their commitments with the needs of tenants.

“The principle must be that of shared burden so that together everyone can have a realistic opportunity of survival.”

He also called for remuneration or a stipend for employees “to get them through this time of difficulty.”

“It would not, in our opinion, be responsible to turn our backs on the needs of those who work with us and help us to run our businesses and it will redound to the benefit of everyone (to make sure) that no one is abandoned in this crisis.”

Businesses would have already started seeing signs of slowdown since March 16, when the Prime Minister announced the first wave of mandatory shutdowns as precautions for covid19, closing schools, bars, cinemas and restaurants (except for take-out) and limiting gatherings to groups of ten. This latest clamp-down will last at least until April 15.

“We are obligated to follow the orders given to us by the government in the interest of everyone’s health and safety, including ourselves. If a shutdown is required of us then that is what we will do.”

Businesses will do so with a sense of confidence, Aboud said, in light of the “competent management of the crisis by the Prime Minister and several key ministers during this time of uncertainty.”

He said DOMA will await further details but implored people to take the Government’s pronouncements on covid19 seriously.