Le Nouvelliste | The moratorium on loans could temporarily relieve entrepreneurs, explains Rock André

The moratorium on loans could temporarily relieve entrepreneurs, explains Rock André

Published 2022-10-11 | lenouvelliste.com

Economist Rock André welcomes the decision taken by the Bank of the Republic of Haiti within the framework of Circular 115-2 to authorize financial credit institutions to grant a moratorium on loans to any debtor in the system who wishes to receive benefits, and which meet the eligibility conditions. This moratorium extends until 31 December 2022 for loans granted to individuals and 31 March 2023 for loans granted to companies.

Rock André emphasizes that this moratorium has a limited period and that debtors must pay their dues. “Overall, this measure will be able to relieve many people, because everyone who has taken out a loan must pay it back. Otherwise, it can be punished. This can lead to a complicated situation, especially for those facing the current crisis in Haiti. The situation is really difficult for entrepreneurs. They have no way to repay their loan. There are no activities. There are no economic rents. This (the moratorium) may relieve them a little bit. However, we are aware that the crisis is much deeper. It is a temporary relief, but the problems have not been solved in their entirety,’ he explained during his participation in the program Magik” on Tuesday 11 October.

The crisis has a significant impact on entrepreneurs. “The impact is catastrophic for businesses because the shock we are currently experiencing is another shock. Many entrepreneurs have been facing terrible shocks for at least four years. Some have closed their businesses, others are resisting. These recent shocks are testing the last group”, highlighted Mr. André, who remembers that “this situation is extremely serious in the country, where companies cease to operate, some are closed. There are hopeless entrepreneurs who have left the country. Some entrepreneurs on the move because of the crisis that has begun can no longer return to the country to resume their activities. When you are in a country where you cannot get around, find fuel, entrepreneurs do not really know how to deal with the basic problems. So at that point there is no way out to make the business work,” he said.

According to the economist, “the situation exceeds the limits”. It calls on policy makers to take measures to prioritize the country’s economy. “Ann bay ekonomiya an yon chans pou täytää menm jan tout lôt peyi fét,” he urged.

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