Kingstown (One News St. Vincent) – The Bank of St. Vincent and the Grenadines (BOSVG) has created a Customer Support Program for customers impacted by the Covid-19 pandemic. But, the program will not be available to customers whose loans are already over ninety (90) days in arrears.
BOSVG stated on Friday that loans in arrears for over 90 days are classified as non-performing and will continue to be manged as normal.
Customers whose employment or businesses are not immediately impacted will also continue to pay their loans as normal, the BOSVG stated.
The bank said it will consider, on a case by case basis, customers with indirectly impacted disposable income due mainly from job losses within the immediate family and or extended family.
The Customer Support Program was created “pursuant to agreements reached among member banks of the Eastern Caribbean Currency Union (ECCU) to provide a loan repayment moratorium for an initial period of up to six (6) months for eligible personal and business customers”.
The bank stated that based on “our initial assessment, the eligible customers will be those classified under the Tourism sector, the Cruise line sector employees, the Entertainment Industry, Medical School Accommodation and other Apartments, the Airline Sector, Traffickers, Farming and Fisheries, Churches, Healthcare and other Service Providers, and loans to Persons in the Diaspora”.
The bank said such categories are not exhaustive and will be amended as a clearer picture of the impact emerges.
BOSVG said it has reviewed its portfolio and has identified a number of eligible customers and will contact them over the course of the next few weeks to work out their participation in the Customer Support Program.
Participants in the program will see a 6-month extension in the maturation date of their loans. This will facilitate the repayment of the deferred principal and interest payments arising from the moratorium.
Loans will be restructured at the end of the moratorium to incorporate the unpaid interest, the Bank stated.