Debt relief to borrowers at the DBN and AgriBank was announced. Borrowers are
entitled to a repayment holiday of between six and 24 months on the principal amount
based on assessment, recapitalisation of interest, lengthening of the repayment periods
and waiving of penalty provisions.
Taxpaying businesses in the non-mining sectors can borrow an amount equal to 1/12th
of their tax payment in the previous tax year, to be repaid after one year.
“The interest rate will be favourably low at the prime lending rate less 1%, on the back of
the government guarantee, capped at N$470 million,” Shiimi said. Applications will be
made via the banks, he said.
Lower salaries
To avoid major retrenchments and business closures, employers including government
and business owners will be allowed to negotiate a temporary 20%-reduction of salaries
and wages during the crisis period. “Worst-hit” industries can negotiate a temporary
reduction of 40%.
“The negotiations will be undertaken through a consultative process with employees and
labour unions,” Shiimi said.
Income grant
To support those employees who have lost their jobs due to the pandemic and its fallout,
government will pay an emergency income grant.
“This is a once-off payment of N$750 to people who have lost their jobs, either in the
informal or in the formal sector, essentially to stave off the vulnerabilities which arise,”
Shiimi said.
Applications may be made by Namibians citizens between 18 and 60 years of age who
have lost their jobs and aren't receiving any other social grants.
Payment will be made by government in collaboration with the Social Security
Commission within seven days, utilising the banking sectors’ ATM infrastructure.
The total amount for this measure is costed at a maximum of N$562 million, based on
the national poverty line of about N$250 per person per week, Shiimi said.
‘Tax-back loan scheme’
A “tax-back loan scheme” for tax registered and tax-paying (PAYE) employees and self-
employed individual persons who have lost income or part thereof will be available.
To provide breathing room for cashflow-constrained individuals who are taxpayers, they
can borrow an amount equal to 1/12th of their tax payment in the previous tax year, to
be repaid after one year. The interest rate will the prime lending rate less 1% on the back
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