12 May - 2 min read
Bank Negara Malaysia (BNM) has commented that a blanket automatic loan moratorium is not an appropriate response to the recent reimplementation of the nationwide movement control order (MCO 3.0). This is due to the less restrictive nature of the latest nationwide MCO – which starts today – in which nearly all economic sectors are still allowed to operate, unlike the previous one.
The governor of the central bank, Datuk Nor Shamsiah Mohd Yunus said that since the end of the blanket moratorium that ended on 30 September last year, banks have been providing targeted repayment assistance to those who are in need. “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,” she stated.
Datuk Nor Shamsiah also advised the public to speak to their respective banks promptly in order to obtain an assistance package that best suits their needs. She added that as of 31 March 2021, the banks have collectively facilitated 1.6 million applications for repayment assistance with an approval rate of 95%.
Aside from the banks, Datuk Nor Shamsiah said that borrowers can also approach multiple other channels that have been set up, including Telelink and the Credit Counselling and Debt Management Agency (AKPK) for advice or further assistance. According to her, BNM and AKPK have both helped 47,000 borrowers manage their debt obligations.
“More importantly, borrowers are getting help that reflect their specific financial circumstances, so they would not incur more cost of debt than necessary and can get back on their feet faster,” said Datuk Nor Shamsiah, adding that BNM’s resources will continue to be mobilised to assist borrowers throughout this challenging period.
The governor of the central bank also reassured borrowers that their Central Credit Reference Information System record will not be affected by these assistances for the whole of 2021.
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world