Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz has said that no other country in the world has granted such a comprehensive loan moratorium like Malaysia has. According to the minister, most countries only provide targeted or limited loan assistance.

The latest six-month moratorium offered under the PEMULIH stimulus package is offered to all individual borrowers and microentrepreneurs without imposing conditions such as income reduction or job loss. Tengku Zafrul stressed that the moratorium facility did not mean loans were forgiven, but that there would be no compounded interest or interest charged on interest.

“Only accrued interest will be charged as usual when we start to make payments after six months,” he said. For those who choose to extend the loan repayment period longer than the original period, the interest to be paid will definitely be higher but the matter has to be negotiated with the respective banks.

“Credit card debts still need to be paid but if needed, it can be converted to a loan with a lower interest rate,” continued Tengku Zafrul. “That means that the credit card owner is still in debt but the cost is lower and the time to pay is also longer.”

The finance minister highlighted that the granting of the moratorium is only a temporary measure that is part of the National Recovery Plan initiative. He added that it needs to be seen along with the government’s efforts to accelerate the transition to the next phase of the movement control order (MCO).

(Source: The Star)

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