Share

Rand Merchant Bank urges coordinated effort to soften virus blow

Rand Merchant Bank urged South African lenders and other finance firms to adopt a more coordinated approach with the government to the economic crisis caused by the coronavirus outbreak.

While South Africa’s banks have made a constructive effort to cushion customers from the impact so far, a much broader response is needed, James Formby, the chief executive officer of the Johannesburg-based corporate and investment bank, said in a statement.

“The challenge to the economy will only be overcome if government, regulators, the broader financial-services industry and business work together,” he said. “There are very encouraging signs that this is already happening.”

RMB is customising relief packages to clients, Formby said. The unit of FirstRand will make available extra funding, short-term covenant waivers and evaluate the capital structures of businesses to help them withstand the longer-term effects of Covid-19. RMB also has prioritised early invoice settlements for its suppliers to prop up smaller businesses.

Formby also said:

  • “It’s important to help companies look critically at their operations and cash flows now and some months ahead rather than just encouraging them to borrow more, which may create more pressure in the future.”
  •  All financial-market participants have a responsibility to keep debt and equity markets functioning.
  • “How well we respond now will play a big part in attracting investments in the future when this phase has passed.”

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.1%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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.

LEARN MORE
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