Companies and employees affected by Covid-19 can still benefit from a postponement of repayment deadlines for their debts with their banks, according to a new opinion from the Bceao.

Until 31 December, credit institutions of the West African Economic and Monetary Union (WAEMU) are invited to grant companies and employees affected by the effects of the Covid-19 pandemic and who request it, a deferral of maturities on their loans, for a period of three months renewable once and this, without interest charge, fees or late payment penalty. By opinion No. 011-10-2020 dated October 14, 2020, the Central Bank of West African States (Bceao) has thus extended this period of postponement of maturities of the claims of these institutions which had expired a few weeks ago.

Among the measures to mitigate the impact of the Covid-19 pandemic on the banking system and the financing of economic activity in the Union, the issuing institution had decided to postpone the deadlines by Opinion No 005-04-2020 of 1 April 2020. One of them focused on the establishment, in connection with the banking system, of support for companies that are experiencing difficulties in repaying their loans due to the health crisis.

"Claims that remain affected by the effects of the Covid-19 pandemic may be maintained in healthy claims during this period and treated as such in their respective prudential categories," the new notice states. These credits will not be classified as overdue receivables. "Assistance granted by credit institutions to microfinance institutions is also eligible for an extension of the period of postponement of maturity within the set deadlines ...", says Genevièmoko Meyliet Koné, Governor of the Bceao.

For companies that are affected and that have not obtained an agreement to postpone deadlines with their partner banks, a monitoring and facilitation mechanism called "Covid-19 Device" is put in place to strengthen the dialogue and restore a relationship of trust between the parties.

The Central Bank is assessing the impact of the pandemic and the measures taken to mitigate its effects on the financial and prudential situation of credit institutions.

"Additional measures could be taken by the Central Bank, on a case-by-case basis, to support the banking sector while preserving the financial stability of the West African Monetary Union," the governor said.