Highlands and Islands Scottish Conservative MSP Edward Mountain urges banks to offer ‘real holidays’ for businesses impacted by Covid-19 coronavirus pandemic
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BANKS need to offer ‘real repayment holidays’ for businesses impacted by Covid-19 coronavirus pandemic, a Highland MSP has urged.
Highlands and Islands MSP Edward Mountain says he has been contacted by a variety of businesses facing higher loan repayments after a Capital Repayment Holiday has finished.
Mr Mountain is urging commercial lenders to support local businesses by extending the term of any loans rather than increasing the payments once the "holiday" has come to an end.
He said: “Highland businesses are in a battle for survival due to the pandemic and they are looking to the banks to help them weather this storm.
"However, I’ve been contacted by many local businesses who are deeply frustrated at the term they are being offered for commercial loan holidays.
"I know of numerous banks that intend to increase payments once a capital repayment holiday has finished. This is happening because some banks are unwilling to lengthen the original term of the loan.
"That is not a real 'holiday’ at all and will put firms under serious financial pressure when they are eventually permitted to re-open again.
"If a firm is given a three-month ‘holiday’ then they should also receive a three-month payment extension to their loan.
"It will take time for businesses to recover after the pandemic and hitting them hard with higher payments could slow that recovery and potentially put jobs on the line.
"I would therefore urge banks to reconsider how they can better support businesses during this period of unprecedented disruption.”
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