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In a news release, BMO stated that they will temporarily provide an effective interest rate on credit cards of 10.99 per cent for personal and small business customers.

Canada’s big banks said last month they would provide their customers with financial relief during the coronavirus crisis, including by deferring payments. While the payment would be skipped, the debts are not being wiped out and customers could end up paying more interest.

The banks have been pushed by the federal government to offer support. Prime Minister Justin Trudeau mentioned last week that the government talked about credit card interest rates with the lenders, but the banks had yet to really budge until Friday.

Even so, the widespread offer of financial support by the banks is largely unprecedented in Canada, with customers making thousands of calls to their lender for assistance or information. Approximately 500,000 requests to defer or skip mortgage payments had already been completed or were being processed since the assistance was announced back in March, the Canadian Bankers Association said on Friday.

However, the requests for assistance are also a sign of how cash-strapped some customers may be feeling, which is something the federal government is attempting to offset with programs included in its more than $250 billion COVID-19 support plans.

“Stimulus will always lag a sudden shock by nature, and the hardship attached to payment deferrals or missed obligations is real and unfolding now,” wrote Derek Holt, Scotiabank’s vice-president and head of capital markets economics, in a Friday note.

For banks, the coronavirus crisis is forcing them to make some compromises. While reduced rates and deferred payments could be a drag on profits, they could also keep clients from defaulting on loans.

• Email: gzochodne@nationalpost.com | Twitter: GeoffZochodne