OVERVIEW
Australia saw its first case of COVID-19 on 25 January 2020.
Since then, Australia's interest rate has been cut twice to
0.25%, the lowest in Australia's history. The AUD has sunk to a
17-year low. The ASX has seen its largest daily percentage fall on
record. Australia's unemployment rate is expected to soar in
the coming weeks. Notwithstanding the promise of emergency packages
to be injected into the economy, the impacts of COVID-19 have
created unprecedented challenges for financiers and their borrowers
arising from the disruption being caused to workforces, service
providers, supply chains and customers.
For corporate borrowers, it is prudent to manage and mitigate
the potential impacts of COVID-19 on your existing financing
arrangements by revisiting the terms of the relevant finance
documents, identifying any areas of potential non-compliance and
engaging with your lenders and advisers early to agree how to deal
with the relevant issues.
