I&M Bank Rwanda reduces interest rates by 0.5% to cushion customers from COVID-19

In an effort to alleviate the financial hardship faced by customers impacted by the ongoing COVID-19 pandemic, I&M Bank Rwanda has taken a significant step by lowering their interest rates by 0.5 per cent. The announcement, made by the bank's CEO, Robin Bairstow, marks the first of such moves and is aimed at extending a helping hand to those struggling with high interest costs during these challenging times. Bairstow emphasized the importance of supporting customers who have experienced income loss or reduction due to the pandemic, by focusing on reducing costs and easing their financial burden. The decision to reduce the base lending rate from 16.5 percent to 16 percent was made with the intention of providing relief to a broad range of customers. Bairstow highlighted that this reduction is in addition to the measures announced on March 18th, where the bank offered to defer both interest and principal payments on loans for up to 90 days. The primary consideration behind these initiatives is to prioritize the immediate needs of customers over long-term profits, especially as businesses face unprecedented challenges. As the banking sector adapts to the economic impact of the crisis, Bairstow discussed the operational implications of the relief measures sanctioned by the central bank. With the Bank of Rwanda allowing local banks to restructure client loans and provide liquidity support, I&M Bank Rwanda has focused on ensuring uninterrupted services for customers. The bank has witnessed a substantial surge in the use of digital banking channels, recording a remarkable 650% increase since the announcement of fee reductions in March. Additionally, efforts have been made to assist customers requesting loan repayment deferrals, demonstrating the bank's commitment to addressing immediate financial concerns. When questioned about the bank's preparedness to navigate the economic repercussions of the crisis, Bairstow highlighted the importance of maintaining liquidity and supporting customers to withstand the challenges. Given the bank's clientele primarily consists of corporate and salaried retail customers, Bairstow expressed confidence in the bank's ability to weather the storm compared to institutions heavily exposed to SMEs or daily wage earners. By prioritizing customer support and standing by their clients during tough times, I&M Bank Rwanda aims to increase assets within the bank and avoid the risk of business liquidation or insolvency. In conclusion, I&M Bank Rwanda's proactive decision to reduce interest rates and provide financial relief underscores their commitment to putting customers first amidst the uncertainties brought about by the COVID-19 pandemic. By reassessing lending rates, offering repayment flexibility, and enhancing digital banking services, the bank is not only supporting their clients but also positioning themselves as a reliable financial partner during challenging times.