The forced closure of economies globally, Botswana included, aimed at containing the spread of the Covid-19 disease has brought economic hardships to individuals and companies, alike. In the case of Botswana, most businesses, formal and informal, were closed effective April 2, 2020, – for a period of 28 days – except those designated as providing essential services, such as banks. Realising that economic closure meant increased credit risk on businesses and individuals, the banking industry in Botswana, collectively, resolved to offer repayment moratorium, in deserving cases, for a minimum period of 3 months, extendable to 6 months, where warranted. This note sheds light on the meaning and implications of repayment holidays in practice.
Read Repayment Holidays Explained Notice