7 April 2020
The new Code of Conduct for small and medium enterprises leasing principles during the COVID-19 crisis brings very welcome clarity to all parties involved.
Australian Banking Association CEO Anna Bligh said the Code would give important guidance for all parties on managing a difficult issue for retail landlords, tenants and banks throughout the COVID-19 pandemic.
“All parties involved should be commended for finding a way to resolve a very difficult situation in a relatively short period of time,” Ms Bligh said.
“The Code outlines a set of principles which are fair and equitable to all parties. They will give clarity to banks when they are dealing with tenants and landlords experiencing financial stress during this difficult time.
“All parties involved should be commended for finding a way to resolve a very difficult situation in a relatively short period of time”ABA CEO Anna Bligh
“Today’s Code complements the assistance already on offer. As announced last week banks have offered businesses with up to $10m in total loan facilities a six month deferral on repayments for loans attached to the business. As part of this initiative, if commercial landlords applied for assistance they would be required to commit to not evicting tenants throughout the COVID-19 crisis.
“For those businesses with loans above $10m, being more sophisticated and complex, would be treated on a case by case basis.
“Australian banks are committed to supporting their customers through the COVID-19 pandemic and the associated economic pressures it has brought with it. This Code provides a welcome tool to assist them in this process,” she said.
Contact: Rory Grant 0475 741 007
Banks have deferred the repayments of one in fourteen mortgages totalling more than $150 billion to assist Australians through the COVID-19 pandemic.
Helping businesses to remain viable and keeping people in their homes is good for everyone.
Australia’s banks deferred an extra 100,000 loans, this week, including approximately 50,000 home loans, to help customers through the COVID-19 Pandemic. Total number of loans deferred is now at least 643,000.