[이데일리 박철근 기자] At the end of March, interest is focused on whether the fourth extension will be made as the Corona 19 loan maturity extension and interest deferral are terminated.
Some are predicting that measures such as extension of maturity and deferment of interest payment will be implemented once again ahead of the presidential election to be held on March 9. However, there are concerns that the repayment burden may increase in the future if the extension is extended again.
The financial community agrees with the extension for resolving liquidity difficulties for small business owners and the self-employed, but insists that selective soft landing support is needed.
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According to the financial industry on the 12th, the financial authorities are putting more weight on the extension of maturity and termination of interest deferral through the soft landing plan rather than the additional extension of the COVID-19 financial support program. However, the position is that the decision will be made by synthesizing the opinions of the Corona 19 situation, economic situation, small business owners, self-employed people, and banks. A FSC official said, “Currently, we are continuously monitoring related statistics such as loan balances in the financial sector.” “At least the statistics at the end of January. It is expected that the FSC will decide the policy direction next month by considering the COVID-19 quarantine situation and the economic situation. Last year, it was planned to end loan maturity extension and interest deferral at the end of September, but as the fourth wave of COVID-19 from July began in earnest, there was precedent for extending the maturity and deferring interest for six months until March.
In particular, the presidential election to be held on March 9 is expected to act as a variable. This is because, if there is a difference of opinion between the financial authorities and the President-elected Transition Committee regarding the COVID-19 financial support program, the possibility of a change in the decision, such as the deferral of interest, at the last minute cannot be excluded.
While the banking sector agrees on the need for an extension, it is in the position that soft landing support is needed. In a New Year’s interview with E-Daily, KB Financial Group Chairman Yoon Jong-gyu said, “I agree with the need for measures to extend the maturity of loans,” but said, “It seems that selective support centered on normal companies, excluding companies with expected insolvency, will be needed.” He continued, “In the case of marginal companies, there is a high risk of insolvency as the payment of future repayment levies comes at once due to deferred measures. It would be desirable,” he said.
Woori Financial Group Chairman Son Tae-seung also said, “It would be desirable to close the business at the time of economic recovery of small and medium-sized businesses that have been directly affected by COVID-19. There is also a need to prevent it from happening, so we have to approach it with caution.”
Banks have already significantly increased their provisions last year, and are preparing for risks that may arise when maturity extensions and interest deferrals are terminated.
An official of Bank A said, “We are continuously monitoring the status of soundness indicators such as the size of financial support for COVID-19 and the delinquency rate. We are preparing for risks by utilizing financial support programs such as amortization conversion,” he said.
An official from Bank B said, “At the end of the grace period for principal and interest repayment, the NPL (Non-performing loan of financial institutions) and the burden of bad debt costs are likely to increase, mainly for small businesses and marginal companies. The likelihood of deterioration in health is low,” he said.
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