Basa says Covid-19 business relief loans likely to reach R24bn in January

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However, this is nowhere near the R67bn banks estimate is needed

The Banking Association SA said on Friday that it expects disbursements to struggling businesses under the R200bn Covid-19 loan guarantee scheme to reach R24.4bn by January 2021.

Speaking to the media on Friday, MD of Basa, Bongiwe Kunene, said a number of factors are behind the slow uptake of the loans. “We are also looking at the operating conditions of each of the companies applying for these loans and we are finally coming to some conclusion that, tentatively, looking at what we know so far, debt is not the only answer,” Kunene said.

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