Paray: Government, banks should assist businesses as retail sector reopens

Mayaro MP Rushton Paray said the government and financial institutions should come together to assist small/medium enterprises (SMEs) as much as possible as the retail sector reopens on August 16.

Speaking during the UNCs press conference on Sunday, Paray said as the retail sector reopens after months of forced shut down, many businesses have been faced with financial hardships, unable to pay employees, rent, and business loans.

“What you have is akin to a man’s house being burnt down and four months later, you are asking him to return to his house,” he said.

He said the Ministry of Health’s press conference on Saturday gave no indication as to how these businesses will resume their operations and return seamlessly to a place of normalcy.

Paray said, “While SMEs are going bankrupt, certain large business enterprises were allowed to remain open and rack up huge profits. This is immoral.”

He said Government must immediately institute effective measures to help the retail sector. Paray is calling for effective policies to mandate banks to set aside an appropriate sum to offer working capital and cash flow to corporate clients.

“That sum should be primarily dedicated to providing loans as requested to the retail sector on the softest possible terms with suitable moratoriums to renegotiate existing loans, reduce credit card charge for a stipulated period, offer increased overdraft and asset financing.”

He said banks should publicly announce a waiver of as many fees as possible for at least a six-month period.

He said the Rowley should also instruct the Finance Ministry to assign funds for displaced workers and implement an effective programme to disburse funds.

“Look at the grant system (implemented last year). Very few people have received money. That is not working.”

He said the programme should be publicly advertised and disbursements issued in 30 days.

Paray also wants a detailed report on all international financial loans and grants taken over the past 18 months and how they have been used.

He said Government should pay outstanding taxes to the business community from the international loans while also asking banks to forego the payment of dividend and bonuses for the financial year, using those funds to assist SMEs.

“It is not possible to accurately indicate the number of closed businesses, jobless workers and other pertinent economic data because the Central Statistical Office has been deliberately starved of important resources.”

He said after six years, the government was yet to establish the statistical institute which as promised in its 2015 general election manifesto.