Wednesday, August 19, 2020

Banks Restructure Loans worth sh 844 billion

    August 19, 2020   No comments

Standard Chartered Bank of Kenya

The Central Bank of Kenya (CBK) has revealed that banks restructured loans worth ksh 844.4 billion by end of June.

This announcement was made during the 29th July Monetary Policy (MPC) Committee meeting which ended up maintaining the Central Bank Rate (CBR) at 7 percent.

In March ,CBK gave some emergency mitigation measures to banks and Payment Services Providers,one of them being the restructuring of loans to cushion the borrowers against the prevailing negative economic effects caused by Coronavirus pandemic.

The lenders responded positively and up to end of June, loans worth a total of ksh 844.4 billion were restructured.

This amount is 29 percent of the total loan book of ksh 2.9 trillion. Out of this ,ksh 240 billion worth of personal and household loans had their repayment period extended by the banks. Ksh 604.4 billion worth of loans were restructured to trade, transport & communication, manufacturing and real estate.

According to the Central Bank, the loan restructuring produced the intended positive effect to the borrowers.
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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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