The new Code of Conduct for small and medium enterprises leasing principles during the COVID-19 crisis brings very welcome clarity to all parties involved.
Australian Banking Association CEO Anna Bligh said the Code would give important guidance for all parties on managing a difficult issue for retail landlords, tenants and banks throughout the COVID-19 pandemic.
“All parties involved should be commended for
finding a way to resolve a very difficult situation in a relatively short
period of time,” Ms Bligh said.
“The Code outlines a set of principles which
are fair and equitable to all parties. They will give clarity to banks
when they are dealing with tenants and landlords experiencing financial stress
during this difficult time.
“All parties involved should be commended for finding a way to resolve a very difficult situation in a relatively short period of time”
ABA CEO Anna Bligh
“Today’s Code complements the assistance
already on offer. As announced last week banks have offered businesses with up
to $10m in total loan facilities a six month deferral on repayments for loans
attached to the business. As part of this initiative, if commercial landlords applied
for assistance they would be required to commit to not evicting tenants
throughout the COVID-19 crisis.
“For those businesses with loans above $10m,
being more sophisticated and complex, would be treated on a case by case basis.
“Australian banks are committed to supporting
their customers through the COVID-19 pandemic and the associated economic
pressures it has brought with it. This Code provides a welcome tool to
assist them in this process,” she said.
