Aus banks act as ‘shock absorbers’, offer four-month extension on loan repayments

Australian banks will extend a deferral on home loan repayments by another four months for anyone significantly impacted by the economic fallout of the coronavirus pandemic. Australian Banking Association CEO Anna Bligh said on Wednesday the move would be "specifically targeted to getting people back on repayments while continuing to help those who are hardest hit”. “Repaying a home loan is in the DNA of the Australian psyche and banks are going to help as many Australians as possible to get back on track and able to keep making their repayments,” she said. Ms Bligh said only those in “genuine need” would be eligible for the extension period and those who were able to begin repaying their loans at the end of the original six-month deferral period would be required to do so. “Australian banks came into this crisis in a very strong position, they are better capitalized then they have ever been, and what that means is they’ve been able to be shock absorbers for the Australian economy as it endures this crisis,” she said. “With this next phase of support Australian banks are reaffirming their commitment to keep their customers afloat and play their part in rebuilding the Australian economy.” Image: Getty

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