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Bloomberg
Rand Merchant Bank (RAB) urged South African lenders and other finance firms to adopt a more coordinated approach with the government to the economic crisis caused by the coronavirus outbreak.
While South Africa’s banks have made a constructive effort to cushion customers from the impact so far, a much broader response is needed, James Formby, the chief executive officer of the Johannesburg-based corporate and investment bank, said in a statement.
“The challenge to the economy will only be overcome if government, regulators, the broader financial-services industry and business work together,†he said. “There are very encouraging signs that this is already happening.â€
Read more: South Africa Eases Bank Rules to Free $17 Billion for Loans
RMB is customizing relief packages to clients, Formby said. The unit of FirstRand Ltd. will make available extra funding, short-term covenant waivers and evaluate the capital structures of businesses to help them withstand the longer-term effects of Covid-19. RMB also has prioritized early invoice settlements for its suppliers to prop up smaller businesses.