Capitec may help clients who fall behind on payments during the coronavirus crisis

Capitec branch
Capitec branch

The executive committee of Capitec is meeting on Monday afternoon to discuss whether it will change its credit policies and procedures to accommodate clients who may fall behind on credit instalments during the coronavirus crisis.

On Sunday evening, president Cyril Ramaphosa warned that the virus could have a severe impact on the economy, potentially bankrupting businesses and leading to job losses.

He said a decline in exports and tourist arrivals will be exacerbated by both an increase in infections and emergency measures to keep it from spreading. 

Capitec spokesperson Charl Nel told Fin24 that at the moment the bank handles credit defaults on a case-by-case basis, using its existing policies and procedures. 

"However, this standard procedure might change after today’s Exco meeting," he said in a reference to Monday afternoon's meeting.

In Italy, government announced that its citizens would not have to make home loan repayments during the coronavirus crisis, and banks also gave  their clients "debt holidays", which allowed them to take a break from payments.

Government, unions, banks and other businesses will take part in an emergency meeting of Nedlac on Monday afternoon, Trade and Industry Minister Ebrahim Patel said on Monday. They will discuss measures to curb coronavirus and its impact on the economy.

Even before the current crisis, South Africans were struggling to keep up with credit repayments - as evidenced by a sharp increase in bad debt write-offs in the recent financial results of large banks. 

Compiled by Helena Wasserman

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders