5 April 2020
Australia’s banks are ready to support the JobKeeper program to help as many Australian businesses and their employees as possible access the benefits while they wait for the scheme to make the first payments.
Businesses may be able to use the upcoming JobKeeper program payment as a basis to seek credit in order to pay their employees until the scheme is making its first payments.
Australian Banking Association CEO Anna Bligh said banks are working hard to make the JobKeeper scheme a success and ensure millions of Australians remain in jobs.
“As many businesses face a number of weeks of little or no cashflow before they receive payments under the Government’s JobKeeper program, Australian banks may be able to help. “ABA CEO Anna Bligh
“Banks stand shoulder to shoulder with the Australian Government and businesses across the country to help us emerge on the other side of this crisis strong and ready to rebuild,” Ms Bligh said.
“As many businesses face a number of weeks of little or no cashflow before they receive payments under the Government’s JobKeeper program, Australian banks may be able to help.
“Many businesses may be eligible for credit, for example, an extension to their overdraft, which can offer them cashflow to pay their staff, while they wait for the JobKeeper program to make the first payments. Each business will be assessed on a case by case basis to determine the assistance that may be appropriate to their circumstances.
“Businesses affected by the COVID-19 crisis should contact their bank to access these initiatives and discuss what support is available to them including options to defer loan repayments for up to six months.” she said.
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“Australian banks are certainly better equipped now than they were in the GFC. They’ve got 2 to 2.5 times the capital reserves put aside for a rainy day than they had in the GFC”
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”