Bank of Israel to help small business owners pay off loans amid COVID-19
Netanyahu: "We will continue to help small businesses during this complicated time"
By HAGAY HACOHENThe Bank of Israel building is seen in Jerusalem June 16, 2020.(photo credit: REUTERS/RONEN ZEVULUN)
Bank of Israel rolled out its new plan on Thursday to aid business owners who had taken loans and are now unable to repay them due to the conditions caused by the COVID-19 pandemic.Following the announcement, Prime Minister Benjamin Netanyahu vowed that “we will continue to help small businesses during this complicated time.”Banks will be obliged to approve requests for loan postponements. Clients required to return loans of up to NIS 500,000 are to be given up to one additional year to repay the money, if they so choose. Those who took larger loans will be able to get up to six months extra time. This will be in effect from January 1 until the end of March. “The goal is to provide business owners with the best conditions to get ready for the day after the crisis,” Bank of Israel governor Amir Yaron said. He added that this would aid businesses to get back on their feet and pay back loans when the slump is over. The Prime Minister’s Office (PMO) reported that the new regulations were jointly shaped by the PMO and the Bank of Israel according to Netanyahu’s instructions.National Economic Council chairman Avi Simhon said that the bank’s move is “very important news to the tens of thousands of businesses hurt during the COVID-19 crisis.” Only businesses who already received a loan postponement before the year’s end are eligible for this extra grace period. Provided they can report a loss of one quarter, or more, of their earnings for three months between March and December when compared to 2019. The months do not need to be consecutive.
