BLUE BALAA
JF-Expert Member
- Nov 30, 2010
- 1,222
- 764
The private sector is bumping on hardship moment after Covid-19’s tragedy which is still happening and no one knows the forthcoming. Business volumes have abruptly dropped yet the fixed costs have to be met, beyond and above there are other recurrent expenditures.
There are critical issues with TRA as regards to tax arrears and estimates which have been put into effect to every businessman besides bank loans which need to be serviced. I don’t see these institutions taking appropriate measures to revisit their policies and reschedule bank repayments, tax arrears and provisions, it is imperative to reassess for their clients to endure in business circle.
So far, the private sector has been totally devastated and we can’t predict the upcoming as we don’t know for how long the situation will prevail. I wish if we could get a hand to sustain us for at least three months as from April to July 2020 hoping that the situation will by then perk up. Well, I am not a financial consultant but I am thinking our Government should at this juncture intrude to turn around the economic direction that is visualized to transpire. Given a chance to suggest I would say the Government should review financial policies for TRA and Banks to hold back some of the liabilities which we are stumbling upon. Below is what the Government could do.
There are critical issues with TRA as regards to tax arrears and estimates which have been put into effect to every businessman besides bank loans which need to be serviced. I don’t see these institutions taking appropriate measures to revisit their policies and reschedule bank repayments, tax arrears and provisions, it is imperative to reassess for their clients to endure in business circle.
So far, the private sector has been totally devastated and we can’t predict the upcoming as we don’t know for how long the situation will prevail. I wish if we could get a hand to sustain us for at least three months as from April to July 2020 hoping that the situation will by then perk up. Well, I am not a financial consultant but I am thinking our Government should at this juncture intrude to turn around the economic direction that is visualized to transpire. Given a chance to suggest I would say the Government should review financial policies for TRA and Banks to hold back some of the liabilities which we are stumbling upon. Below is what the Government could do.
- Encourage commercial banks to lend term loans and over drafts at marginal interest and stretched grace periods but Government should also subsidize if needs be.
- Pump in stimulus package through commercial banks and lend to private sector
- Review policies on non-performing loans (NPLs) which are likely to happen
- Rescheduling repayments, tax arrears and provisions during this turbulence moment
- Give, in any suitable arrangement the financial support to private sector in covering payrolls costs so as to stop retrenchments which is anytime soon going to happen.
