In a survey conducted by the Central Bank of West African States (BCEAO), banks in WAEMU member countries gave their perception of the impact of the health crisis on their activities. In Togo, 12 out of 13 banks participated in this BCEAO survey.

In the opinion of the heads of EU credit institutions interviewed as part of the survey, the coronavirus pandemic is already having a significant impact on banking activity. Indeed, the vast majority of them indicate that the volume of their operations decreased in the first two weeks of April 2020, compared to the same period of the previous month.

On average, 70.1% of these managers observed a decline in credit applications from customers, the implementation of competitions and the collection of deposits. In contrast, 44.1% of respondents point to a significant increase in cash withdrawals at ATMs. If these trends continue, the BCEAO indicates that 56.8% of institutions anticipate a worsening of cash flow tensions during the month of May 2020.

"In the face of this unfavourable environment, banks have begun to take measures focused essentially on limiting the spread of the pandemic within them, while trying to maintain an adequate level of service. Indeed, 53.2% of respondents indicated that they had reduced their workforce while the vast majority (77.5%) kept all their points of service open, "informs the summary document of the results of the survey of credit institutions.

Difficulties

The opinions expressed by the heads of the banks show a gradual implementation of the measures enacted by the Central Bank. Indeed, more than a third of banks (36.0%) have already extended maturities in accordance with Opinion No. 005-04-2020 on the postponement of the maturity of the claims of credit institutions affected by the Covid-19 pandemic. These restructurings involved 283 companies, for a cumulative amount of 98,507 million FCFA.

However, only 6.3% of respondents indicated that they had used the new procedures for issuing classification agreements to non-financial companies, thanks to the listing carried out by the BCEAO, to submit refinancing requests to the counters of the Issuing Institute.

Sixty-two (62) of the banks surveyed in the sub-regional area (55.9%) mentioned difficulties that could limit the application and impact of the facilities granted by the Central Bank. These difficulties relate mainly to the understanding or interpretation of certain measures taken by the BCEAO, as well as to complaints issued by banks.

The majority of the responding banks (62.9%) noted difficulties in understanding or interpreting certain measures taken by the BCEAO. This is essentially the one relating to the postponement of maturities, for which the treatment of interest and other charges should be more explicit. The taxable institutions are wondering whether during the period of deferral of maturities, interest should continue to accrue. They also asked the BCEAO about the approach to be taken at the end of the deferral period, for the repayment of the deadlines that have been postponed.

Grievances

Some banks (41.9%) issued complaints against the BCEAO. The main requests can be summed up in a communication from the BCEAO to the general public and the extension of the measure of postponement of deadlines to individual customers.

Taxable persons have indicated that several customers who request the postponement of the maturities of their loans are not able to demonstrate the impact of the Covid-19 crisis on their financial situation. They thus called for a communication from the BCEAO to the public, in order to specify the conditions to be met to benefit from the measure of postponement of deadlines.