Australia

Relief

• Credit Unions considered Essential Services.
• Small businesses are impacted and stimulus packages being directed to SMEs. 
• Reserve bank (central bank) $90 billion funding facility in place (with limits).
• Other liquidity funding mechanisms in place.
• APRA – relaxation around capital.
• Regulator allowing favorable capital treatment for payment deferrals and for SME loan.
• Payment deferrals and help for consumers taking place at the  credit union level.

Restrictions

• Now in lockdown with closed borders.

Related Issues

• Ongoing monitoring to ensure liquidity availability. 
• Regulatory Holiday to delay certain large compliance deadlines such as open banking is desired.
• Many credit unions working remotely, extending working hours, enacting disaster recovery plans.

Romania

Relief

• Consumer relief bills pending, including one that will provide a moratorium on payments through September. It is unclear if interest can be accrued or there can be recapitalization of missed payments.

Restrictions

• They are seeing some runs on banks and credit unions, but they now have limits on withdrawals. Generally, each institution can set limits to manage cash reserves. 
• Cap on withdrawals of funds from banks (including CU deposits) - currently at 10 000 - 15 000 EUR per week, per credit union, but could be reduced further.
• Possible loan repayment break of up to eight months is under discussion.

Canada

Relief

• Expanded access to services for credit unions
• Increased farm lending made available.
• Increased mortgage insurance availability.
• Assistance to encourage small business lending.
• Various relief efforts made at the provincial level that varies per region.
• British Colombia credit unions allowed to draw down on capital buffers.
• Increased borrowing capacity raised by $16 billion, raised commercial cap limits from 30 to 40%.
• Changed risk weighted asset level on certain loads.
• Emergency Lending Assistance currently being contemplated by centrals.
• Credit unions are extending mortgages, providing loan relief, made individually at credit union level. Many credit unions have reduced hours and some have closed branches
• Relief bills are providing child benefits, increased unemployment benefits, shorter waiting times for unemployment benefits, delayed tax filing and tax payments through fall, deferred student loans.

Restrictions

• Closed borders. 

Related Issues

• Regulatory holiday desired to accommodate regulatory changes already in the works or with upcoming effective dates.

Croatia

Relief

• Banks together with the government have offered borrowers a three-month repayment holiday. Repayment of this three-month waiver could either be paid after the break or in small installments over the coming months.
• No foreclosure or eviction action can be taken during the crisis.
• All credits considered category A on 31 December 2019 will be treated as such by the end of the year regardless of performance during the crisis.
• They can ask government to cover minimum wage for employees, which is a help, but there is a huge pressure on income.

Restrictions

• Moratorium on evictions and foreclosures.  

Other Issues

• Not only do they have coronavirus (COVID-19), but a recent earthquake has killed a lot of people, further weakened the economy and damaged infrastructure. 

North Macedonia

Relief

• Generally OK and have access to liquidity through central bank. 
• Got an extension on characterizing bad loans as delinquent (from 90 to 150 days) which helps on the accounting side. 
• Government wants to slash interest rates by 50% which will put pressure on profits.

Poland

Relief

• Relief bills coming that will help small businesses. They believe this will include credit unions. 
• Bill coming to cover salaries of employees.
• CU-specific items coming including changes to decrease liquidity requirements.
• Relief from certain tax/liability burdens.  
• Polish government plans to release 200 billion zloty in order to help SMEs and entrepreneurs hit by the crisis. Credit unions are likely to be covered by the scheme.
• National Association of Co-operative Savings & Credit Unions (Poland), a WOCCU member, has requested from a number of emergency measures from the regulator, including credit support from the national bank, ability to serve non-members, postponement of the return of funds in case of early repayment and more.
• Banks have announced a three-month suspension of mortgage loan payments. Interest rates can still be charged for the period of payment postponement.

Other Issues

• Some early indications that runs on banks and credit unions have not occurred and the panic has passed.
• Mortgage loan repayment break applies to all mortgage holders. No proof of worsened financial situation is required. The additional break is provided in addition to any forbearance clauses already foreseen in the mortgage agreement. Government guidance about whether these measures apply to credit unions is still pending.
• Financial services sector is calling for a review of liquidity obligations and looking at tools for improving equity ratios (e.g. allowing a state agency to cover shares in credit unions).

Ireland

Relief

• North and South are working on forbearance of payments and provisions trying to protect the credit ratings of consumers. 

Other Issues

• They are also seeing people withdrawing large amounts of cash. They are trying to get favorable treatment along with the banks to ease certain restrictions to assist with the crisis.

Ukraine

Relief

• Received relief to allow General Assembly meetings to be postponed and for such meetings to occur remotely.
• Relief for postponement of the expiration of the powers of the Supervisory Board or Auditing Committee allowing them to

Restrictions

• Credit unions have been temporarily closed down by the government because they do not provide services online and they don’t want people physically coming into branches.

United States

Relief

• US Senate provides small business support and individual support.
• Extension of compliance for CECL by one year.
• Flexibility for virtual board meetings.
• Regulator now has the ability to insure non-interest bearing transaction accounts at unlimited level.
• Additional guidance on TDRs released.
• Ability to participate in paycheck protection program through Treasury and SBA.
• Lending to cover payroll on condition that they don’t layoff employees (forgiveness).
• Mechanism for government-owned or -backed mortgages for deferrals– 60-day deferral and four additional 30 day deferrals.
• Covid-19 Relief Bill.
• Physical/in-person exams curtailed.
• Deadlines for certain reporting delayed (HMDA, FCRA, etc.).

Restrictions

• Individual states are restricting all non-essential businesses from operating.
• Individual states are issuing stay-at-home or shelter-in-place mandates.
• Individual states are issuing mandatory curfews.

Other Issues

• Need short form process for relief processes–quick restructuring of loans for coronavirus relief.

United Kingdom

Relief

• N.B. credit unions are classified as essential services and are able to remain open during the lockdown (guidance relevant to credit unions can be found here).
• £20 million emergency fund is open to credit unions, which will provide grants between £5,000-£100,000. An additional £5m will become available in fully flexible, 0% interest loans starting at £50,000.
• Scotish Government announced that credit unions can benefit from a £2 million loan fund.
• Paying 80% of the wages of furloughed workers.
• Providing "business interruption loans" on favorable terms in conjunction with the British Business Bank and a number of other banks. These loans are Government underwritten to a large extent (80%).
• Business Rates (tax paid based on the rate-able value of the business premises).
• Relief/Grants available from government for smaller businesses.
• Most banks are offering £300 free overdraft facilities and payment holidays on mortgages. Credit unions are also providing payment breaks. Most creditors are offering some kind of relief for members of the public.
• Large drop in central bank interest rates.
• Credit unions are able to make decisions around which staff are considered "key workers."
• Most companies are allowing individuals to cancel prearranged services for free.

Restrictions

• The UK is under a lockdown where all non-essential services have been suspended and only those who are unable to work from home and who are "key workers" (e.g. health care, food production, communications, financial services) are allowed to travel into work.
• More stringent restrictions apply to the vulnerable who are expected not to leave their homes for 12 weeks.

Other Issues

• Ability for credit unions to rapidly mobilize digital solutions for maintaining services and contact with members remains an issue.
• Individuals with serious health conditions must be "largely shielded from social contact for around 12 weeks."
• Currently, delivery services continue, and individuals are allowed outside once a day for exercise and to get essential supplies.

Kenya

Relief

A.     National Government Relief:

• 100 % Tax Relief for persons earning gross monthly income of up to Ksh. 24,000.
• Reduction of Income Tax Rate (Pay As - You - Earn) from 30% to 25%. 
• Reduction of Resident Income Tax (Corporation Tax) from 30% to 25%. 
• Reduction of the turnover tax rate from the current 3% to 1% for all Micro, Small and Medium Enterprises (MSMEs); 
• Appropriation of an additional Ksh. 10 Billion to the elderly, orphans and other vulnerable members of society through cash-transfers by the Ministry of Labor and Social Protection, to cushion them from the adverse economic effects of the COVID-19 pandemic.
• Temporary suspension of the listing with Credit Reference Bureaus (CRB) of any person, Micro, Small and Medium Enterprises (MSMES) and corporate entities whose loan account falls overdue or is in arrears, effective 1st April, 2020.
• The National Treasury to cause immediate reduction of the VAT from 16% to 14%, effective 1st April,2020.
• Central Bank of Kenya has lowered Central Bank Rate (CBR) to 7.25% from 8.25% which will prompt commercial banks to lower the interest rates to their borrowers, availing the much needed and affordable credit to MSMEs across the country.
• Central Bank of Kenya lowering the Cash Reserve Ratio (CRR) to 4.25 percent from 5.25 percent hence providing additional liquidity of Ksh. 35 Billion to commercial banks to directly support borrowers that are distressed as a result of the economic effects of the COVID-19 pandemic.
• Central Bank of Kenya shall provide flexibility to banks with regard to requirements for loan classification and provisioning for loans that were performing as at March 2,2020 and whose repayment period was extended or were restructured due to the pandemic.
• All Government Ministries and Departments shall cause the payment of at least of Ksh. 13 Billion of the verified pending bills from SMEs, within three weeks from the date hereof.
• The Kenya Revenue Authority shall expedite the payment of all verified VAT refund claims amounting to Ksh. 10 Billion within 3 weeks; or in the alternative, allow for offsetting of Withholding VAT, in order to improve cash flows for businesses.
• Ministry of Health to immediately appropriate Ksh. 1.0 billion from the Universal Health Coverage kitty, towards the recruitment of additional health workers to support in the management of the spread of COVID-19.  
• Guidelines issued encouraging State Agencies to establish and implement frameworks for staff to work from home, and employees aged 58 years and above to take leave.

B.     Ministry of Agriculture, Livestock, Fisheries, and Cooperatives Development

• The Ministry of Agriculture issuing guidelines to allow farmers continue their farming activities while observing restrictions and also allowing other value chain players (agro dealers, agro-processors, transporters, veterinary services) to support food systems.
• Government has made available fertilizer at affordable prices at Kenya National Trading Corporation (KNTC) and National Cereals and Produce Board (NCPB).

C.     State Department of cooperatives

• Cooperative societies allowed to pay dividends and interest on deposit if already audited in accordance to Section 25(7) of Cooperative Societies Act. The deposit taking SACCOs will need to comply with Regulations 55(1) of the SACCO Societies Regulations, 2010. All dividends and interests paid must eventually be ratified by members during the next AGM.

D.     Council of Governors (CoG)

• County governments have waived Cess (form of local government taxes) on food supplies and transportation services.
• Recruitment of 6656 health workers for the COVID-19 emergency.
• Counties set out isolation centers.
• CoG supplying at least 400 liters of sanitizers per week to counties.

Restrictions

• National Security Council has sanctioned and caused the issuance of a Public Order Number 1 on the Coronavirus Pandemic, with the following key aspects:
• Effective Friday, 27th March, 2020; a Daily Curfew from 7 p.m. to 5 a.m., with all movement by persons not authorized to do so or not being Medical Professionals, Health Workers, Critical and Essential Services Providers, being prohibited between those hours (unfortunately SACCOs are not enlisted)
• Kenya Ferry Services is vested in the National Police Service, the Coast Guard and the National Government Administration Officers (NGAO) thereby limiting movement in Coast region across Indian Ocean, and Western Region across Lake Victoria

Related Issues

• County governments calling on national government to reduce electricity tariffs.
• Kenya Union of Savings and Credit Cooperatives (KUSCCO)
• Embarked on memos to SACCOs on operations and COVID-19.
• Established meeting with state department to ensure SACCOs are part of the institution offering essential services, and establish sectoral working groups on supporting the movement, members in rural and peri-urban areas.
• The ongoing Desert Locust invasions that are a threat to food security.
• Air travels and airports operations suspended affecting greatly on of the SACCOs whose common bond members are from the industry.
• SACCO AGMs suspended and SACCO banking halls’ operations restricted in relation to national government orders.