in

Bank Negara: Blanket automatic loan moratorium for all not best solution for now

Nor Shamsiah advised borrowers requiring financial assistance to speak to their respective banks in order to obtain the most suitable assistance. ― Bernama pic

Subscribe to our Telegram channel for the latest updates on news you need to know.


KUALA LUMPUR, May 11 — Bank Negara Malaysia (BNM) said today a blanket automatic loan moratorium was not the best solution for all given the recent containment measures announced by the federal government since most economic sectors were now allowed to operate as compared to the previous year.

Responding to a question whether BNM would consider another round of moratorium given the recent containment measures announced, BNM governor Datuk Nor Shamsiah Mohd Yunus however advised borrowers requiring financial assistance to speak to their respective banks in order to obtain the most suitable assistance for their needs.

This comes after Prime Minister Tan Sri Muhyiddin Yassin announced Malaysia will enter yet another nationwide movement control order (MCO) beginning May 12 until June 7 necessitated by rapidly rising Covid-19 case numbers.

“Banks are continuing to provide repayment systems including targeted moratoriums to borrowers who have lost their job and income. This will continue as some borrowers need help given the recent MCO.

“So while the MCO has been extended, nearly all economic sectors are allowed to operate unlike the previous MCO in 2020.

“Borrowers can go through various existing channels including the Credit Counselling and Debt Management Agency (AKPK) and BNM Telelink that offers financial assistance to those who need them.

“More importantly, they are getting help that reflect their financial circumstances, so a (blanket) loan moratorium is not the best solution for all borrowers,” she said during a virtual press briefing of BNM’s Economic and Financial Developments in Malaysia in the First Quarter of 2021.

MORE TO COME

Reference