Banks able to extend loan moratorium, says deputy finance minister

Each decision to extend the moratorium on loan repayments is monitored by Bank Negara Malaysia.

KUALA LUMPUR: The government says banks are able to extend the moratorium on loan repayments if needed as they have sufficient capital buffer.

“Every decision to extend the moratorium is monitored by Bank Negara Malaysia with the involvement of the bank associations,” Deputy Finance Minister I Abdul Rahim Bakri said in the Dewan Rakyat today.

He was responding to a supplementary question from Mohd Salim Sharif (BN-Jempol), who asked if banks were able to extend the loan repayment moratorium in the event that the economy remained weak.

Previously, Prime Minister Muhyiddin Yassin said the moratorium would be extended by three months for certain groups, especially those who lost their jobs this year.

After the three months, the moratorium for those retrenched might be extended by the banks, depending on the situation of each individual.

Monthly instalments, meanwhile, will be reduced for those who have had their salaries cut.

Muhyiddin said the initiative was expected to benefit three million individuals and SMEs, adding that those who were eligible could contact their banks to apply for the extension from Aug 7. - FMT