CEO Leila Fourie: The state of capital markets ensures that the financial sector can support the economy.
The Johannesburg Stock Exchange (JSE) has announced that it will provide relief measures to businesses that are affected by Covid-19 and in financial distress.
According to a statement, the JSE will grant distressed companies extended payment terms of between three and six months, with no interest charges.
JSE group CEO Leila Fourie said:
“The JSE is extending a helping hand to our valued clients and suppliers that are affected by the pandemic. We value our relationships with our market partners and we will endeavour to play our part in making sure they remain sustainable.”
The relief measures include a 50 percent fee reduction for trading, clearing and settlement in all companies listed on the JSE AltX and BEE board for the remainder of 2020 to help stimulate continued trading and liquidity in these companies.
Leila added that “the depth and liquidity of capital markets ensures that the financial sector can support the real economy during times of crisis. The exchange plays an essential role in enabling price transparency, trading out of positions and providing access to capital. The JSE is reducing listing fees by 25 percent for those small cap and AltX companies looking to tap the market to raise secondary capital.”
JSE director of capital markets Valdene Reddy said:
“In order to ensure that the impact of Covid-19 is minimised, the JSE will continue paying its small and medium suppliers and service provider’s monthly retainers for contracted suppliers. Non-contracted small and medium suppliers will be paid the average amounts those suppliers were billing the JSE prior to the national lockdown.”