Commercial banks are still holding Sh330.9 billion worth of restructured loans on their books nearly two years since Covid-19 relief measures, which allowed for renegotiation of payment terms expired.
The Central Bank of Kenya (CBK) monetary policy report for December 2022 shows that by the end of last year, the outstanding amount of restructured loans accounted for nine percent of the sector’s loan book.
The regulator in March 2020 put in place emergency measures that included allowing lenders and borrowers to negotiate moratoriums on loan repayments to mitigate the adverse economic effects of coronavirus, with these measures expiring on March 31, 2021.
Under the plan, loans worth a cumulative Sh1.7 trillion were restructured, accounting for 57 percent of the banking sector’s gross loan book.
By the end of the period, the value of outstanding restructured loans amounted to Sh569.3 billion, or 19 percent of the total gross loans, reflecting progressive repayments under easier terms.
Credit – Taken from – https://www.businessdailyafrica.com/bd/corporate/companies/banks-stuck-with-sh330bn-of-covid-19-restructured-loans–4138708
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