650,000 applications for banks to ease loan repayments

KUALA LUMPUR, 19 Nov 2020:

There were 650,000 applications for the targeted moratorium that was effected on Oct 1, of which 98% had been approved.

Of the approved applications, Finance deputy minister I Datuk Abd Rahim Bakri said 40% were for moratorium extensions.

He said the applications were mainly from individuals who had lost their jobs and businesses in sectors that are still experiencing significant operational constraints as a result of the Covid-19 pandemic.

“Of the approved applications, 60% were for reduction in monthly instalment payments. These applicants were mainly borrowers whose salaries had been deducted,” he told the Dewan Rakyat today.

He was responding to Datuk Mohd Fasiah Mohd Fakeh (Bersatu-Sabak Bernam) who had asked about measures taken by banking institutions to continue assisting households and businesses after the expiry of the moratorium on Sept 30.

Abd Rahim said the government had granted a six-month blanket bank moratorium as part of the Prihatin Rakyat Economic Stimulus Package to help ease the burden of the people and businesses due to the pandemic shock in March 2020.

Nevertheless, the government followed up with the targeted moratorium effective Oct 1, specifically for individuals and households or SMEs devastated by job and income losses throughout 2020 and likely in 2021.

Abd Rahim explained the targeted moratorium is essentially about deferring loan repayments for three months or reducing monthly instalment payments for six months.

– Bernama