A health worker at the Wanderers taxi rank in Johannesburg on March 18 2020. Picture: AFP/MICHELE SPARARI
In a letter to trade and industry minister Ebrahim Patel on Thursday, DA member of parliament Dean Macpherson called for local development finance institutions, such as the Industrial Development Corporation , the Development Bank of Southern Africa , and the National Empowerment Fund , to make bridging finance available for small and medium enterprises at 0% interest.The coronavirus has left the global economy reeling and stocks plummeting amid fears of a jobs bloodbath.
The banking industry opposed the proposals on the grounds that they would result in a restriction of credit to the low-income section of the market and that extinguishing debt represents an unconstitutional deprivation of property. It would also mean that credit providers would have to price in the additional risk.Macpherson said the pandemic will see most industries requiring intense amounts of capital, the majority of which is borrowed.
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DA calls for debt-relief law to be halted due to Covid-19The party says the act will restrict access to credit for low-income consumers and wants bridging finance available for SMEs at 0% interest
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