Business

Loan repayment moratorium to end in Sept as scheduled

Datuk Seri Tengku Zafrul Abdul Aziz

TheMole
Written by TheMole

KUALA LUMPUR, July 21, 2020: The moratorium on loan repayments introduced following the Covid-19 outbreak in the country will end at the end of September as scheduled.

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said in parliament today that banks will instead be advised to take a “targeted approach” in helping borrowers with restructuring their existing loans.

“The moratorium is for six months, that is until September 2020. The amount that has been allocated for this is about RM100 billion,” he said.

He said there was no need for an extension of the moratorium as most businesses have been allowed to resume operations and borrowers should consequently be able to make their loan payments by now.

Zafrul, who was replying to Datuk Seri Ahmad Maslan (BN- Pontia) said discussions on the matter are still underway with the banks.

He said an example of the “targeted approach”, which could be adopted by the banks is to extend the loan repayment period to reduce the amount of monthly repayments. 

Another example is to change the terms and conditions or the interest rate, as well as granting other exemptions until the borrowers are financially stable.

“However, for now, we hope that the borrowers would meet the banks and get help from the Credit Counselling and Debt Management Agency and Small Loan Scheme,” added Zafrul.

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