Standard Chartered assures financing of businesses amid Covid pandemic
Standard Chartered Bank Ghana has assured businesses in the country of continuous provision of financing support for them amid the Covid-19 pandemic.
The assurance by the Bank is in spite of the inability of businesses to deliver on loan repayment schedules due to the adverse impact of the Covid on their operations.
Speaking to norvanreports on Tuesday, Regional Head of Client Coverage for Corporate Commercial Institutional Banking for Africa and Middle East, Sarmad Lone, stated that despite the negative impact of the Coivd on business and economies around the world, the pandemic has not completely halted economic activities and operations of businesses.
According to him, businesses and the financing of large infrastructure projects are still ongoing around the world and some of which the Bank financed during the peak of the pandemic last year.
“I understand that there are fears that NPLs could increase hence banks will be measured in supporting businesses, but our clients need help and we did help them last year and will continue to help them.
“And this is because we recognise that the pandemic has not completely brought the world to a halt because businesses as well as large infrastructure projects are ongoing so much so that even at the peak of the pandemic last year the Bank supported flagship projects across Africa, the Middle East and the world over.
“And so if our clients in Ghana and around the world are saying we should hold on and that there’s not enough liquidity for them to repay the loans and say ‘let’s talk in two months time’ we are ok, we are willing to wait for them to be liquid enough to repay their loans [sic],” remarked Mr Lone.
Also: Dubai Chamber members’ exports to Eastern Africa grow by 2.4% in first half of 2021
Also speaking on the Bank’s commitment to financing businesses amid the pandemic was Mandela Otaru, Senior Credit Officer for West Africa at Standard Chartered, who admitted that there has indeed been an expansion in the Bank’s loanbooks due to its financing support to the manufacturing sector during the heat of the pandemic last year.
“The manufacturing sector is expanding because of disruptions in supply to the country, and indeed we have have seen an expansion in the loanbook because of the expansion in the manufacturing sector due to the financing support we are providing them,” said Mr Otaru.
Contributing to the discussion was the Head of Client Coverage Corporate Commercial Institutional Banking for Ghana, Xorse Godzi, who also noted that the Bank last year made available some $70 million in fresh loans to business during the pandemic and that demand for fresh loans by businesses continue.
“We made new loans last year and the demand for new loans by businesses is still growing, it hasn’t slowed and so if the clients say they are waiting for the business climate to improve, that’s fine by us. We respect that and will wait,” he stressed.
Standard Chartered for the for the second quarter of this year witnessed a marginal strengthening of its loan asset quality as its non-performing loan portfolio (NPL) decreased marginally from 24.19 percent to 23.16 percent in the review period.
