Rand Merchant Bank urges coordinated effort to soften virus blow | Fin24
 
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Coronavirus Funding

    Could a R100 billion social impact bond help fund SA's Covid-19 interventions?

  • Money Clinic

    I have invested R1m to be paid out monthly, I have not received any during Covid-19. What can I do?

Loading...

Rand Merchant Bank urges coordinated effort to soften virus blow

Apr 03 2020 09:00
Roxanne Henderson

Rand Merchant Bank 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.”

RMB is customising relief packages to clients, Formby said. The unit of FirstRand 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 prioritised early invoice settlements for its suppliers to prop up smaller businesses.

Formby also said:

  • “It’s important to help companies look critically at their operations and cash flows now and some months ahead rather than just encouraging them to borrow more, which may create more pressure in the future.”
  •  All financial-market participants have a responsibility to keep debt and equity markets functioning.
  • “How well we respond now will play a big part in attracting investments in the future when this phase has passed.”

rmb  |  covid-19  |  coronavirus
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote

Loading...