Companies in Macao will be getting extra breathing room following the extension of a pandemic-era loan arrangement.
In an announcement reported in local media on Tuesday, the Macau Association of Banks (ABM) said it would be extending an initiative by which businesses with bank loans can prioritise the repayment of the interest and delay repayment of the loan’s principal.
The measure, which was implemented following the pandemic and originally intended to expire on 31 December this year, will now expire at the end of 2024.
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Though Macao’s economy has been recovering from the ravages of the Covid-19 years, the bounceback has not been even among businesses. The Monetary Authority of Macao (AMCM) says there was a 2.2 percent increase in the proportion of bad loans in Macao in July.
The Macau Economic Association forecasts that the city’s Prosperity Index could stand as high as 6.2 by November, from its pandemic low of 1.2, recorded in July 2022.
However, economists warn of speedbumps ahead, including levels of unemployment and low consumer confidence in mainland China – by far the biggest source of visitors for Macao’s tourism-dependent economy.
