The local SPCCU rescued more than six million in troubled loans under the ECCB loan moratorium program.
Designed as a temporary clutch for individuals who were adversely affected by the COVID-19 pandemic, the program approved 73 loans for deferred repayment with no consequent to the customer.
According to the General Manager of the St. Patrick’s Cooperative Credit Union (SPCCU) Peter Queeley, the SPCCU ran two loan moratorium programs which commenced in 2020 and another in 2021.
In 2020, the Credit Union approved 58 loans during the first lock down for the program. This allowed customers a maximum of 3 months grace period which included April, May and June.
Collectively, persons had a loan balance of 5.7 million. The collective premium was approximately EC$78,616 per month with a total amount —EC$5,781,344.
In February of 2021 the second moratorium was launched after the island’s second lockdown and there was an uptake of 14 persons. The Loan balance deferred was EC$1,595,391. The total premium deferred in February was EC$16,086.
According to the SPCCU Manager, “We made an offer to persons based on a regional program pushed by the Central Bank, whereby we offered our borrowing members who’s incomes were affected by the lockdown.”
Persons who were desirous of opting into the program were required to apply and provide evidence that they were affected by the lockdown. Queeley said, “The way the program works is customer’s loans would be pushed back/reset by three months at its initial premium. There were no costs to reset the loan or to apply for the programs, no fees and no charges.”