The COVID-19 Coronavirus Loan Guarantee Scheme has been extended by three months.
In a statement, national treasury confirmed that, as at 27 March 2021, banks had approved 14 827 in loans to the value of R18,16 billion.
Treasury added that the total number of loan applications received since the beginning of 2021 to 27 March 2021 is 1 787 of which banks approved 511 applications with only 97 taken up by clients.
The Loan Guarantee Scheme was launched by treasury, the South African Reserve Bank and the Banking Association South Africa on 12 May 2020.
It was announced as part of the Economic Stimulus Package in April 2020.
According to treasury, the Guarantee Scheme will continue to service all loans advanced up to the extended date for a maximum of five years.
“The further extension of three months will enable an orderly winding down of the scheme and allow those businesses who have applications already lodged to be assessed.”
Treasury also indicated that it continues to, in partnership with relevant stakeholders, “explore more appropriate support and risk-sharing mechanisms, including proposals related to non-bank financial institutions and development finance institutions, mindful of the fiscal challenges facing South Africa”.