ABN AMRO has announced support measures for clients in response to the impact of the coronavirus. The support extends to some 55,000 Commercial Banking clients with a credit facility of up to 2.5 million euros, for whom the payment of interest and principal will be automatically deferred for six months. While the announcement does not mention diamond industry clients, their inclusion seems implied.
The announcement states that interest and principal payments due in April through September will not be collected from these Commercial Banking clients; they can make these payments later. Any business that does not need to defer payment is required to inform the bank by 31 March 2020 at the latest. Payment will not be deferred for these clients.
Specifically referring to Commercial Banking clients, ABN AMRO writes:
"In principle, all clients served by Commercial Banking and who have a credit facility of up to 2.5 million euros are automatically eligible for deferred payment, with the exception of a number of specific types of financing, such as commercial finance. Loans managed by the Settlement team of the Financial Restructuring & Recovery department are not in scope.
A number of specific sectors are being immediately hard hit by the coronavirus. ABN AMRO is exploring the possibilities of offering these sectors as a whole generic support measures that will have an effect in the very short term. Large corporates served by Corporate & Institutional Banking (turnover in excess of 250 million euros) will be offered customised arrangements."