THE Development Bank of Wales is offering a three-month suspension of borrowing repayments to all its customers.

Economy minister Ken Skates said the three-month capital repayment holiday would help firms manage the financial fallout from the coronavirus outbreak.

He said the Welsh Government was working on a wider support scheme to help companies manage the "unprecedented pressures" presented by the spread of the virus, which has so far infected 124 people in Wales and more than 1,300 in the whole of the UK.

“We can expect increased sickness rates among the workforce, consumer confidence and supply chain issues to present real challenges for companies in Wales," Mr Skates said. “We are committed to supporting businesses.

"The capital repayment holiday for Development Bank customers is an important step and we are working on a wider support package to provide the reassurance and assistance the business community needs.”

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The Welsh economy could be particularly affected because of its prominent car, aviation, and tourism sectors, the minister said, adding: “We will do all we can to protect the Welsh economy and support Welsh businesses.”

Giles Thorley, CEO of the Development Bank of Wales, said cashflow management would become a "real and urgent issue" for small businesses in the coming weeks.

"This is why we have implemented this measure to relieve that pressure quickly and effectively," he said. "The Development Bank of Wales currently has [more than] 1,000 business customers and we are working hard to support them during this period.

"I want to reassure the market that we are ready and able to help Welsh business through this time of uncertainty. We will continue to review our approach as this situation develops.”