BSP plans support packages


BANK South Pacific Chief executive Robin Fleming says the bank has approached its corporate customers in sectors which are affected by Covid-19 downturn to discuss support packages.
Fleming said those clients were primarily airlines, transport, hotels and mine services.
The discussed support packages included a three-month interest only payments rather than normal principal and interest payments to ease the burden on their cash flows.
“Repayment relief will also be offered to individuals who are employed by businesses in those sectors for a period of up to three months,” Fleming said. “BSP is not charging any restructure fees for processing repayment relief packages.”
He said BSP acknowledged the positive decision by the Bank of PNG to reduce the cash reserve requirement by three per cent at this time as it was important that during conditions such as this the banking system remained liquid to ensure banks had the capacity to provide working capital and other support for businesses.
“The banking system remains quite liquid and Bank of PNG
will continue to monitor conditions.”
Fleming added that during the period of the state of emergency, BSP was able to keep all of its branches open and majority of its sub branches notwithstanding challenges it had encountered in getting staff to and from work.
BSP thanked its staff for their support during this period.
“While the state of emergency is on, and where possible, BSP customers are encouraged to use the BSP digital banking services at the convenience of their homes, be it mobile banking or internet banking to ensure you all limit your movements and support the Government in its efforts to minimise and stop the spread of Covid-19,” Fleming said.
“When you do access our branches, please practice social distancing outside and inside our branches at all times.”

One thought on “BSP plans support packages

  • BSP’s support packages for its corporate & personal loan customers are commendable, however, there appears to be no such packages for SMEs that have existing loans with BSP. The interest rates charged on various SME loans are not priced off ILR, hence no transmission of benefits to SMEs. SME businesses are currently severely hit by effects of lockdown and will continue for the duration however that long.

    The Peoples Microbank has recognized the plight of the SMEs and has put in place three months waiver of loan repayments ( P&I). It’s initiative is highly commendable.

    BSP should clarify its position in this regard.

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