Date: 22 February 2021
Assessing the effectiveness of the Loan Guarantee Scheme
Intellidex has been researching the need for, and then the practicalities of, loan support into the economy since the start of the covid-19 crisis. The loan guarantee scheme designs we published a year ago fed into the debate amongst policy makers before its launch. In the State of the Nation address last week, the president directed National Treasury to look at invigorating the Loan Guarantee Scheme but did not provide any specifics.
Intellidex has released a new report assessing the deployment of the scheme and the aims for reanimating it. Among other things, the report recommends: “there needs to be development of quite different schemes that help companies to reduce their financial risk if we are to deliver financial solutions to stimulate the economy rather than bridge finance businesses through lockdowns, as the LGS was designed to do.”
Note: The report can be downloaded from here