‘LOAN REPAYMENT BREAKS LIKELY’

LOBAMBA – Loan repayment breaks have been a figment of the imagination in some, but Minister of Commerce and Trade Manqoba Khumalo is confident that this could be a reality.

The minister mulled hat this could be one of the interventions government will discuss with the private sector when looking for means to cushion the public from the biting effects of the coronavirus outbreak. Senator Khumalo was speaking in a press conference at Parliament on Frdiay when he gave an outline of business interventions in the midst of the COVID19 scourge. “For instance, we could negotiate with the financial institutions to allow for two months break on a particular loan repayment because the coronavirus will leave many people economically unstable,” he said.

Said the minister: “With the imminent devastating effects of COVID-19 on business, which include rise in poverty and crime levels and ultimately affects the purchase power, the ministry shall work with stakeholders to look at options to mitigate against impact on businesses, MSMEs and consumers. On another note, Senator Khumalo said 12 measures had been outlined by his ministry to cushion the country from the effects of the virus outbreak. He said guidelines would be mapped out soon to focus on the key areas. The minister said those who travel as a result of trading will be classified under essential travel.

“The ministry recognises the effect that COVID-19 will have on cross border trade. Not only will imports and exports be affected, but our informal sector; which is almost fully reliant on cross border trade, will take heavy strain. This is particularly distressing for the ministry as government has declared 2020 the Year of the SME. “Be that as it may, we wish to assure cross border traders that as we continue to monitor the situation, travelling for trade purposes shall fall within the category of essential travel; until such time that government is advised otherwise. However, we wish to urge traders to exercise extreme caution as guided by the World Health Organization (WHO) and the Ministry of Health. We also encourage local businesses to look for alternative sources of business in case the situation worsens,” he said. The minister further warned retailers against taking advantage of the demand of face masks and sanitisers, urging them to desist from hiking them.

He further said all businesses should ensure that they provide sanitisers for clients and staff. “All business facilities are encouraged to provide sanitisers and hygiene kits at strategic points within their businesses.  This will ensure the safety of employers, employees and their consumers. Special attention will be given to high density labour forces, such as textile firms, which we shall jointly capacitate with relevant stakeholders to help them develop a preparedness plan. Targeted interventions such as screening of all workers in the morning or during shift changes are encouraged,” he said. He also said he expected all businesses, including nightclubs and other entertainment venues, to comply with His Majesty’s declaration.
“The ministry and the police will be monitoring compliance and shall take action where appropriate,” he said. Informal sectopr must be capacitated. The ministry said it would work with municipalities to ensure that the informal sector is well capacitated in terms of preventative measures for both informal traders and their customers. The minister urged the nation to consider cashless means of trading to avoid spreading the coronavirus.

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