Equity bank has restructured about 25 per cent of its net loans for the year ended December 31, 2019, in a move aimed at cushioning customers from the diverse effects caused by Coronavirus pandemic.
The Sh92 billion loans relief includes extension of loan terms to cut monthly instalments and repayment breaks on the full or part of the credit.
The lender takes the measure following a loosening of the loan repayment rules by the Central Bank of Kenya (CBK) last month.
Equity Bank CEO James Mwangi said the relief will be rescheduled up to three years of repayment after the pandemic.
“Clients who can demonstrate the impact of Covid-19 on their businesses and the soundness of their business model in the new normal will get reprieve in terms of loan rescheduling and refinancing with up to an additional three years of repayment,” said Mwangi.
The CEO added that, “We believe that by supporting our existing clients, we shall help them keep their supply chains open and functional while maintaining their employees on their jobs.”
The move is also set to cushion the country’s economy, which is expected to slow down to 1.5 per cent this year.
Covid-19 cases in the country continue to soar with the government anticipating more cases in the near future.