The Government has announced a six-month mortgage payment and interest holiday for homeowners who have been impacted by COVID-19.
Finance Minister Grant Robertson announced the decision on Tuesday afternoon.
“[The holiday] will mean people won’t lose their homes as a result of the economic disruption caused by this virus,” said Robertson.
Further details about the mortgage holiday will be announced by individual banks over the next two days.
Robertson also announced a $6.25 billion boost for small to medium sized businesses to help them cope with the economic fallout from the virus.
The Business Finance Guarantee Scheme will provide credit to cushion the financial distress felt by businesses amid the pandemic and subsequent four-week lockdown.
It will include a limit of $500,000 per loan and will apply to firms with a turnover of between $250,000 and $80 million per year.
The loans will be for a maximum of three years and expected to be provided by the banks at competitive, transparent rates.
The Government will carry 80 percent of the credit risk, with the other 20 percent to be carried by the banks.