Latest update February 23rd, 2025 1:40 PM
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BOG asks banks to: reduce interest rates, defer loan payment, waive ATM fees
The Bank of Guyana (BoG) has asked commercial banks to take steps to reduce the impact of the Coronavirus (COVID-19) on customers.
According to correspondence seen, Governor of BoG, Dr. Gobind Ganga, has floated a number of possibilities to the Guyana Association of Bankers (GAB).
Bank of Guyana
Among other things, there should be a deferring for loan payments and reduction of interest rates on loans.
The letter was sent to head of the GAB, Richard Isava, who is the Guyana Bank for Trade and Industry (GBTI).
The banks that are part of the association would include Bank of Baroda, Scotiabank, Republic Bank, Citizen Bank, Demerara Bank, and GBTI.
“As Guyana continues to implement measures to deal with COVID 19, the Bank of Guyana is cognizant of the likely economic and financial fallout that may result, particularly the negative effects on the bank system,” Dr. Ganga acknowledged in his letter.
He said that BoG will use its regulatory powers to relax its powers and allow banks to pass the measures to its customers.
In addition to a reduction of interest rates on loans and credit card customers, commercial banks were also asked to defer loan payments to assist customers in good standing; defer loan payments by companies to assist with their liquidity requirements and waive or reduce fees/penalties for transactions with ATMs, POS, EFT, debit card processing and late payments on loans, etc.
BoG’s Governor, Dr. Gobind Ganga
They are also being asked to take measures to reduce in-person transactions by using e-banking, ATMs, POS and telephone.
According to Dr. Ganga, the BoG as the supervisory authority will take a number of measures to help the affected sectors.
These include allowing banks to renegotiate credit facilities; granting a three-month moratorium to classify affected accounts as non-performing, ensure the foreign markets continue to function to satisfy legitimate needs.
According to Dr. Ganga, cambios should also take note of the measures and take steps to ensure that the fallouts are minimal.
Guyana has closed it two airports for two weeks barring international flights.
The measures to fight the virus, which is sweeping the world, have seen countries closing their borders.
In Guyana, shopping has been affected with malls, bars and other entertainment centers reporting a sharp drop in Guyana.
It is likely companies will be asking workers to take a pay cut as Guyana attempts to deal with one of the worst crises ever.
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