Government, banks unite against Covid-19

24 Mar 2020

The Government’s announcement of a $6.25 billion Business Finance Guarantee Scheme for small and medium-sized businesses is a great example of collaboration in a time of crisis, BusinessNZ Chief Executive Kirk Hope says.

"It’s great to see the Government, retail banks and the Reserve Bank all coming together to protect Kiwis and unite against Covid-19. This will encourage banks to lend to businesses struggling with the fallout from these very challenging times."

The Reserve Bank has agreed to reduce banks core funding ratios from 75% to 50%, further helping banks to make credit available.

The scheme will include a limit of $500,000 per loan and will apply to firms with annual turnover of between $250,000-$80 million.

The government has also announced a six-month mortgage holiday for Kiwis affected by Covid-19, a bold move that has been welcomed by the BusinessNZ network."

The latest support package will help take some of the weight off the shoulders of affected businesses," Mr Hope says.