Post updated July 30th, 2020 at 09:12 am
Prime Minister Tan Sri Muhyiddin Yassin has announced a targeted extension of three months for the moratorium on bank loans, applicable to those who have lost their jobs or had pay cuts this year as a result of the COVID-19 pandemic. After three months, the period could be extended further by the respective banks according to each individual’s situation.
He added that this new initiative was a result of discussions between him, the Finance Ministry and Bank Negara governor. “I hope this targeted moratorium and bank assistance extension will be able to ease the burden of those affected by the Covid-19 economic fallout,” said Muhyiddin during a special address held earlier today.
Additionally, the prime minister also said that banks had given their commitment for the initiative in the form of several measures to assist borrowers, including individuals and small/medium enterprises (SME). These measures include only paying the interest for a set time frame, extending the duration of the loan to reduce monthly repayments, and other forms of relief until borrowers are financially stable to commit to their repayments.
Muhyiddin said these measures are expected to benefit up to 3 million individuals and SMEs. Borrowers who are eligible are encouraged to contact their respective banks from 7 August onwards to file an application for this initiative.