Highland MSP urges banks to offer ‘real holidays’ for lockdown businesses
Edward Mountain MSP is calling for more help from the banks as businesses affected by the Covid-19 lockdown.
They had been contacting him over their concern at facing higher loan repayments after their Capital Repayment Holiday has finished.
The Conservative MSP is urging commercial lenders to support local businesses by extending the term of the loans and therefore not increasing the payments once the ‘holiday’ has come to an end.
Mr Mountain said: “Highland businesses are in a battle for survival due to the pandemic and they are looking to the banks to help them weather this storm.
"However, I’ve been contacted by many local businesses who are deeply frustrated at the term they are being offered for commercial loan holidays.
"I know of numerous banks that intend to increase payments once a capital repayment holiday has finished.
"This is happening because some banks are unwilling to lengthen the original term of the loan."
That was not a "real holiday", he argued, and it would put firms under serious financial pressure when they were eventually permitted to re-open again.
If a firm were given a three-month "holiday" then it should also receive a three-month payment extension to their loan.
Mr Mountain added: "It will take time for businesses to recover after the pandemic and hitting them hard with higher payments could slow that recovery and potentially put jobs on the line.
"I would therefore urge banks to reconsider how they can better support businesses during this period of unprecedented disruption.”