The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has requested the government to have loan moratoriums and associated initiatives reinstated by the Reserve Bank of Malawi (RBM), as the moritoriums cushioned the private sector from shrinking due to Covid.
MCCCI Chief Executive Officer Chancellor Kaferapanjira said that since businesses are under the negative impact of the coronavirus pandemic, businesses that are barely getting by are being asked to pay back loans, which does not make sense. “. Generally businesses are failing to grow because people’s buying power has been suppressed with them not getting increments in their workplaces and having other entitlements removed,” Kaferapanjira said, speaking to The Daily Times newspaper.
When the moratoriums were implemented last year, 1,900 customers benefited from the moratoriums with a consolidated balance of K103 billion, constituting 15% of total gross credit of the industry. Fees and charges on digital banking were also to be reduced by 40%, in a bid to increase customer utilisation amid calls for social distancing.