Moratorium unlikely to be extended, indicates Bank Negara

Bank Negara Malaysia says the economy is recovering and it has no intention of extending the moratorium as it will have repercussions that it wants to avoid.

PETALING JAYA: Bank Negara Malaysia (BNM) has no intention to extend the six-month moratorium for loans, which will end on Sept 30, even as Putrajaya engages with banks to do so.

The central bank’s assistant governor Adnan Zaylani Mohamad Zahid said as of June 19, the moratorium had cost financial institutions some RM47.5 billion since it came into effect on April 1.

Of the sum, RM16.6 billion had benefited the business sector, while the remaining RM30.9 billion was for the public.

“The economy is recovering and we have no intention of extending the moratorium as it would have repercussions that we want to avoid.

“The banking sector finances several economic activities and we are at a crossroads as there are sectors which are still facing challenges,” he said, during a discussion with the Credit Counselling and Debt Management Agency (AKPK) CEO Azaddin Ngah Tasir.

Also present was Mohd Zaini Aris, a representative from the Association of Banks in Malaysia (ABM).

Meanwhile, Azaddin said borrowers who faced difficulties in servicing their loans after the moratorium ends can seek help from banks to restructure or reschedule their loans.

He also said that those who had taken several loans can seek AKPK for advice on restructuring loans.

“We will negotiate with banks for the best solution,” he said.

Zaini, meanwhile, advised borrowers who find it difficult to service their loans against appointing a third party to restructure or reschedule it.

On Sunday, Finance Minister Tengku Zafrul Tengku Abdul Aziz said the government is engaging with banks to extend the six-month moratorium on bank loans.

He said this followed many requests by people to extend the moratorium.

Last month, the Malaysian Trades Union Congress (MTUC) called for the six-month moratorium for housing and car loan repayments to be extended by another half a year.

In May, the Federation of Malaysian Consumer Associations had urged the government to extend the moratorium to the end of 2020.

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