Financial experts have urged financial institutions to consider restructuring their loan facilities to reduce challenges that may arise due to delayed repayment or default following the coronavirus (Covid-19) outbreak.
Centre for Financial Inclusion and Literacy Consultancy managing director Abel Mwenibanda in a written response on Friday said in view of Covid-19, it would be appropriate and commendable for banks and microfinance institutions to restructure their loans and products for a mutual benefit with their customers.
He said: “It’s clear from financial reports that profitability of most of our financial institutions hinges more on interests gained.
“Therefore, if no measures are taken, other institutions will be forced out of business or recapitalised in the near future.”
Bankers Association of Malawi president Kwanele Ngwenya, who is NBS Bank chief executive officer, said banks are engaging their customers for a win-win situation.
“Banks will not just pounce on customer’s securities. Banks are always warm to their customers by continually engaging, we assure our clients that we are in this situation together.”
Consumers Association of Malawi executive director John Kapito described the current Covid-19 situation as the most difficult and sensitive period for both the financial institutions and consumers of financial services.
Since Covid-19 was reported in China last December, it has spread across the globe killing about 32 000 people as of yesterday.
Locally, President Peter Mutharika declared a State of Disaster and banned gatherings exceeding 100 people among other measures that are greatly affecting businesses.