Banks to extend COVID-19 loan deferrals to avoid September "cliff". I speak with Australian Banking Association chief executive Anna Bligh

Bank customers struggling financially due to COVID-19 will be given another four months to start paying back their loans. 

However, banks have warned extensions will not be automatic and any customer who can afford to start repaying their mortgage or business loan will be expected to do so once the initial six-month deferral period expires in September. 

Australian Banking Association chief executive Anna Bligh told ABC's Peter Ryan that the extension of the federal government's JobKeeper program will be critical in any recovery.