New Credit Policy Measures to Support Our Valued Customers
We understand that these are challenging times for many of our customers, and we want to assure you that we are here to help. Considering the recent credit policy interventions issued by the Bank of Namibia, we are pleased to introduce new measures that aim to provide relief and assistance to our clients.
General Loan Repayment Moratorium:
We are now offering a loan repayment moratorium, allowing eligible borrowers to defer their loan principal repayments for a period ranging from 1 to 24 months. This moratorium is designed to alleviate the financial burden on customers impacted by the Covid-19 pandemic.
Throughout the duration of the moratorium, interest may be capitalised, subject to the condition that burden sharing shall apply. However, capitalised interest must not amount to punitive interest. We will not increase interest rates or charge fees for extending moratoriums beyond the agreed upon time frame.
Our team will conduct comprehensive assessments, both at the initial extension of the loan moratorium and at each subsequent extension or rollover, to ensure that no borrower is worse off at the end of the moratorium period.
Distressed Restructuring:
For borrowers facing prolonged financial distress, distressed restructuring is a separate process from the general loan moratorium. This option is only available to borrowers who demonstrate future viability and can comply with the revised payment schedule. If you qualify for distressed restructuring, you may be eligible for a moratorium extension on a restructured loan for up to six months.
Please note that full interest payment is expected during this period. A positive change in loan classification can only be considered when a sustained record of performance for at least six months on the expected full repayment of interest is established.
Loan Classification:
Loans granted an initial general loan moratorium will not be adversely classified under regulatory loan classification because of the moratorium extension. However, if you seek an extension or rollover of the moratorium, a comprehensive assessment is required, and an increase in credit risk may warrant an adverse shift in loan classification.
A positive change in the classification and provisioning status of any loan or portfolio of loans can only be made when new facility terms are established, conditions of reclassification to accrual status are agreed upon, and a sustained record of performance for a period of at least six months is satisfied.
We remain committed to supporting you through these uncertain times. Please do not hesitate to contact us if you have any questions or concerns about these new credit policy measures. Together, we will navigate through these challenges and emerge stronger.
Frequently Asked Questions
What is the General Loan Repayment Moratorium?
The General Loan Repayment Moratorium is a relief measure that allows eligible borrowers to defer their loan principal repayments for a period ranging from 1 to 24 months. This moratorium is designed to alleviate the financial burden on customers impacted by the Covid-19 pandemic.
Am I eligible for the General Loan Repayment Moratorium?
Eligibility for the moratorium is determined through a comprehensive assessment conducted by our team, taking into consideration each borrower's financial and economic conditions and the impact of the Covid-19 pandemic on them.
Will my interest rates change during the moratorium period?
Interest may be capitalised during the repayment holiday period, subject to burden sharing conditions. However, we are prohibited from increasing interest rates above the initially agreed-upon rate or charging administration fees for subsequent moratorium extensions.
What is Distressed Restructuring?
Distressed Restructuring is a separate process from the General Loan Moratorium, designed for borrowers facing prolonged financial distress due to factors related to Covid-19. This option is available to cooperative borrowers who demonstrate future viability and can comply with the revised payment schedule.
How do I know if I qualify for Distressed Restructuring?
Our team will conduct a comprehensive and documented assessment of your financial situation to determine if you are eligible for distressed restructuring. Key factors considered include the impact of Covid-19 on your financial situation and your ability to honour your obligations under the revised payment schedule.
How does the Loan Classification work?
Loans granted an initial General Loan Moratorium will not be adversely classified under regulatory loan classification as a result of the moratorium extension. However, if you seek an extension or rollover of the moratorium, a comprehensive assessment is required, and an increase in credit risk may warrant an adverse shift in loan classification.
How can I apply for the General Loan Repayment Moratorium or Distressed Restructuring?
Please contact your customer relationship manager or our customer service team to apply for the General Loan Repayment Moratorium or Distressed Restructuring. They will guide you through the application process and provide further information on the necessary steps.
How long does it take to process my application?
The processing time for your application will depend on the complexity of your financial situation and the need for additional information or documentation. Our team will strive to process your application as quickly as possible and will keep you informed throughout the process.
Can I still apply for a moratorium if I have a loan that was classified as non-performing before 1 April 2020?
Loans classified as non-performing before 1 April 2020 are not eligible for a General Loan Moratorium. However, such loans may benefit from distressed restructuring and must be classified accordingly.
If I have further questions, who should I contact?
If you have any additional questions or concerns about the new credit policy measures, please do not hesitate to contact your branch or our Customer Contact Centre team, at tel: +264 61 299 1200.
