Banks say they will continue Covid support

By Peter Lynch |

Borrowing it

Some good news for borrowers and mortgage holders tonight after Treasurer Josh Frydenberg revealed the major banks had agreed to continue to give relief to hardship cases after September.

There has been concern that the economy could fall off a cliff in October once JobKeeper payments and bank loan holidays come to an end.

The Treasurer told a press conference on Saturday the banks had assured the government they will continue supporting customers affected by the coronavirus pandemic.

Prime Minister Scott Morrison and Mr Frydenberg met with the banks on Friday as worries grow about the economic impacts of the end of support.

“The banks were very clear. They supported their customers on the way in to this crisis and they will be supporting their customers on the way out,” Mr Frydenberg told a press conference today.

The banks said they were working towards an “orderly transition” so that those who can start making repayments do so. But those in financial distress would be supported.

“We saw just this week the terrible news out of Qantas of 6000 people losing their jobs,” Mr Frydenberg said.

“We are going to continue to see some sectors really struggle as the international borders remain closed … there is still some very challenging tough days ahead.”

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