(18 November 2020 – Australia) The number of deferred loans has plunged below 300,000 since the height of the coronavirus pandemic in Q2 2020, with the value also dipping to $86 billion according to newly released data by the Australian Banking Association (ABA).
More than 900,000 loans were deferred by Australian banks from Q1 2020, predominantly among the majors, peaking at over A$250 billion by the end of Q2 2020. According to the latest data, total business loan deferrals have fallen to under 73,000 while SME loan deferrals decreased to 65,000.
The number of paused loan repayments is predicted to slide further this month as more firms approach the end of their six month deferrals. Deep concern remains in place for when government stimulus ends in addition to restrictive border closures.
“This is an encouraging sign that most Australians are through the worst. Australian banks have played a major role in carrying the economic burden of the pandemic for their customers. The good news is that the majority are now bouncing back as they restart their loan repayments” stated ABA CEO, Anna Bligh.