The Morrison Government congratulates the announcement by the Australian Banking Association (ABA) that their members will defer loan repayments for six months for small businesses who need assistance because of the impacts of the coronavirus.
This unprecedented move by the banks is a game changer. It will provide a big boost to the confidence of small businesses at this difficult time.
The banks have stepped up to the plate and are playing their role as part of Team Australia.
Small businesses are the back-bone of the economy employing more than more than 5 million Australians who stand to benefit from this relief.
This relief will allow more than $100 billion of existing small business loans to be deferred and in doing so provide repayment relief of up to $8 billion over the next six months.
Today’s announcement will also help small businesses build a bridge to the other side of this health crisis.
It follows the announcement yesterday by the Federal Government and the Reserve Bank of Australia (RBA) to inject $105 billion into the economy to support lending to small and medium sized businesses.
The Morrison Government will continue to work closely with the banking industry and our financial regulators to support Australian jobs and businesses during this challenging time.
Today’s announcement is another demonstration of the strength and resilience of Australia’s financial system.