KUALA LUMPUR – A blanket loan moratorium may not be the best solution for borrowers following the reimposition of the movement control order (MCO 3.0) nationwide; instead borrowers should approach banks to help them meet their debt obligations, Bank Negara Malaysia (BNM) said.
Governor Datuk Nor Shamsiah Mohd Yunus said all banks already have their payment assistance plans, including targeted loan moratoriums, which can be offered to borrowers who have lost their jobs or suffered a reduction in income.
“Borrowers can also approach multiple channels that have been set up, including BNM’s Credit Counselling and Debt Management Agency (AKPK), if they require advice or further assistance.
“More importantly, borrowers are getting help that reflects their specific financial circumstances so that they will not incur more cost or debt than necessary and can get back on their feet faster.
“So loan moratoriums, in this respect, may not be the best solution for all borrowers,” she told reporters following the release of Malaysia’s first quarter 2021 Gross Domestic Product performance today.
Shamsiah was responding to questions on whether the central bank would consider another round of moratorium after the government announced the nationwide MCO 3.0 from May 12 until June 7 due to the increasing number of new Covid-19 cases daily.
The governor urged borrowers to engage with banks completely so that creditors can give them the right help and advice to suit their circumstances.
She said up to March 21 this year, banks had facilitated 1.6 million applications for repayment assistance with an approval rate of 95%.
According to her, BNM and AKPK have also supported over 47,000 borrowers to help them meet their debt obligations with their banks.
“Our resources will continue to be mobilised to assist borrowers throughout this challenging period,” she said.
She also assured that borrowers’ Central Credit Reference Information System (CCRIS) record will not be affected by the assistance for the rest of the year.
Shamsiah said the government has fiscal space to introduce more stimulus packages to revive and shore up the economy due to the pandemic as the statutory debt stood below the ceiling of 60% of GDP accorded by Covid-19 legislation.
She noted that the government’s statutory debt was expected to stand at around 58.2% of GDP by the end of this year with the announcement of the Strategic Programme to Empower the People and Economy (Pemerkasa).
“The government has reiterated its intention to build fiscal buffers that have been utilised during the pandemic once we recover from the crisis,” she added. – Bernama, May 11, 2021
