PETALING JAYA: The Association of Banks (ABM) has declared that its members have no plans for automatic loan moratoriums although a new movement control order (MCO) has been imposed.
-Advertisement-
ABM executive director Kalpana Sambasivamurthy said Bank Negara Malaysia (BNM) had decided that a blanket automatic loan moratorium was not the “optimal solution” since most economic sectors had been allowed to operate during the lockdown.
But she said ABM members would offer repayment assistance, and urged borrowers needing such help to contact their banks as soon as possible.
“Banks understand that there are borrowers who continue to be affected and who may require further repayment assistance,” she told FMT.
“ABM member banks have simplified the documentation required and are committed to making the application process for repayment assistance convenient for borrowers.
“In most cases, borrowers should be able to apply and complete the application online or over the phone.”
Kalpana said borrowers could also apply at bank branches but advised them to first confirm with banks whether there were changes in their operating hours or services.
-Advertisement-
BNM announced a six-month loan moratorium during the first MCO last year, leading to calls for similar relief during the second MCO in January and the third, which will run from today until June 7.
Prime Minister Muhyiddin Yassin announced the nationwide MCO on Monday. Despite a ban on cross-district travel, social gatherings and official events, all economic sectors will be allowed to operate.
Speaking to reporters following the release of Q1 2021 gross domestic product (GDP) data yesterday, BNM governor Nor Shamsiah Mohd Yunus urged borrowers to liaise with banks and use existing payment assistance plans, including targeted loan moratoriums, when asked if the central bank would consider a blanket automatic loan moratorium.
Among those who led the call for a moratorium was Umno Youth chief Asyraf Wajdi Dusuki, who said Umno Youth had received many requests from the public for banks and other financial institutions to grant a moratorium of at least three months.
“Many are complaining of hardships and increased pressure due to their sudden reduction in income during the MCO, which restricts movement and hinders efforts to restore their businesses,” he said in a statement yesterday.
“The reality is that not even one bank or financial institution has suffered huge losses or is near bankruptcy due to the moratorium during the first MCO.”-FMT