Banking industry releases advice for people facing financial difficulty during lockdown
Finance Minister Grant Robertson has confirmed that the New Zealand government will not yet offer rent or mortgage relief amid the COVID-19 Delta outbreak.
In 2020, the government announced a freeze on rent rises and a mortgage “holiday” before the level 4 lockdown on March 25 – both lasting for six months.
However, with the latest level 4 lockdown, Robertson confirmed that the government will not offer the same reliefs, but it will continue to monitor the situation.
“We will continue to monitor the situation, talk with banks, and act as appropriate,” Robertson said, as reported by NZ Herald.
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Meanwhile, Roger Beaumont, the chief executive of the New Zealand Bankers’ Association, said the association currently does not have plans to bring back a loan repayment deferral scheme.
However, he added: “That may change depending on how the current situation unfolds. We will continue to watch this closely.”
“When we introduced the loan deferral scheme in the first lockdown, there was much more uncertainty about how COVID would impact the economy. To date, we’ve come through better than expected,” Beaumont said, as reported by NZ Herald.
Beaumont advised those experiencing financial difficulty due to the current lockdown to contact their bank to discuss their options. Robertson aired the same sentiments, adding that people can approach Inland Revenue as the Inland Revenue Commission had the discretion to defer provisional tax for businesses.
Beaumont added: “Banks can offer a range of options for customers facing hardship, depending on their circumstances. The sooner you contact your bank, the better placed they are to help.”
