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New bank data shows Australian borrowers are resuming loan repayments

The number of borrowers holding loans due to the financial stress of the coronavirus pandemic is declining, raising expectations that the pressure from the recession will ease.

According to new figures from the Australian Bankers Association, the total number of pending loans has almost halved, and both businesses and households have decided to resume repayment.

The banking sector has allowed borrowers in need due to the health crisis to withhold loans for up to six months.

Loan deferrals peaked in June, with more than 700,000 mortgage and small business customers freezing repayments.

According to ABA, the total number of deferrals has dropped by 45% and nearly 440,000 mortgages and corporate loans are still suspended.

Anna Bry, CEO of ABA, said it was a positive sign that the economy improved and people felt they could recover after the recession.

“The postponement of these loans has helped hundreds of thousands of Australian families and small businesses survive the pandemic,” Bry said.

“This is a good sign for the economy. It shows that more Australians are recovering and resuming loan repayments.”

media_cameraAnna Bry, CEO of ABA, said the economic situation is improving. Photo: Paul Braven / AAP

Approximately 270,000 mortgages remain on hold, but 116,000 SMEs are still suspending repayments.

The six-month postponement period for this sector has expired and banks are now providing personalized support to assist customers affected by the recession.

Major Australian banks have hired thousands of additional staff to support the large number of claims that occurred during the blockade.

Customized support measures for bank customers still affected by COVID-19 may include loan restructuring and further deferrals.

Bry said those still facing financial difficulties need to contact the bank as soon as possible to discuss ongoing support.

“If you’re in financial trouble, call the bank and it will help the bank find a way,” she said.

“The sooner you talk to the bank, the more options you have to help find a way.”

First published when Sign Aussies is recovering

New bank data shows Australian borrowers are resuming loan repayments

Source link New bank data shows Australian borrowers are resuming loan repayments

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