Cal Bank has indicated it may have some challenges in granting fresh loans to businesses in the coming months.
MD for the Bank Philip Owiredu said the Coronavirus has affected the repayment of loans to the bank.
He made this known at an engagement with shareholders and investors of the bank.
Philip Owiredu explained to the shareholders and investors that they have deferred the repayment of some of the constructions loans.
According to him, this has seen an uptick when it comes the non-performing loans of the bank.
“The loans are going to be challenged we have deferred some of the construction loans which had scheduled repayment we have deferred the repayment which will see an uptick when it comes to our non-performing loans as a whole. I do not think that in terms of construction looking at the book that we have now we will see a significant… in that but when it comes to other sectors like services, training, the hospitality industry who have been directly impacted by this…”
He stated that with other sectors of the economy which has also been affected like the educational sector they have put in place structures to help the institutions to still continue with their works to be able to generate revenue.
“So if the educational sector we have a product we fund a school, we are working with them to ensure that they have put in structures to be able to continue with tuition and at least generate some revenue.”