Borrowers told to see their banks

Central Bank of Solomon Islands. Photo by CBSI
Advertise with Islandsun

BORROWERS are asked to see their banks about any issues over their loan repayment in light of the COVID-19 community outbreak.

Central Bank of Solomon Islands (CBSI) issued the advisory, Monday.

This came after CBSI waived three regulatory policies for financial institutions.

These are:

  • CBSI has waived the application of paragraphs 33, 34 and 40 of prudential guideline 2 (PG2) and application of paragraph 7 of PG8.  The former relates to classification of loans considered under COVID-19 relief package and loan loss provisioning.  
  • The waiver to paragraph 7 of PG8 allows licensed financial institutions to change or introduce new interests, fees & charges without the 30 calendar days required before implementing such changes.
  • This waiver is effective for six months from the date, Thursday 3rd February 2022.

In a statement, CBSI said:

“This action is necessary in light of the current COVID-19 community transmission which is adversely disrupting business operations of households and/or individuals resulting in weak cash flows to repay loan commitments on time.

“Meanwhile, CBSI encourages bank customers to talk with their respective bank or credit institution on appropriate COVID-19 relief packages for their consideration during this difficult time of community transmission of the coronavirus.”