The Government welcomes an announcement by the Australian Banking Association (ABA) on the continued support that will be provided by banks to customers on repayment deferrals.
The ABA has confirmed that banks will continue to support customers who need it with up to another four months of deferred repayments on already deferred loans. This initiative has been agreed with APRA who will provide the banks with extended regulatory relief so that they can continue to support their customers with greater flexibility during this time.
APRA has also provided relief to encourage the banks to restructure loans where possible as a way of helping these customers. This restructuring could include extending the term of the loan or moving from principal and interest repayments to interest-only for a period of time.
The ABA estimates that there are over 800,000 loans that have been deferred worth over $260 billion.
It is important that customers that can afford to make repayments continue to do so. Borrowers that are facing considerable financial difficulty as a result of this pandemic, should talk to their banks and work with them to find a more sustainable approach.
The Government acknowledges and thanks the Banks, APRA and ASIC for their collective efforts in support of Australians who financing financial hardship during this difficult time.
The Morrison Government continues to support both businesses and individuals that have been impacted by the coronavirus crisis and the actions of the banks and APRA will complement this support and help more Australians get to the other side.