Banks clarify that loan moratorium will include B40

 

The Association of Banks in Malaysia has clarified that their members' loan moratorium will include all borrowers from B40 income households who are registered with Bantuan Sara Hidup or Bantuan Prihatin Rakyat.

This after its initial statement yesterday which appeared to be that the loan moratorium only applied to those who had lost their jobs.

Its statement yesterday said there would be two categories of relief: (1) A three-month moratorium or 50 percent reduction in monthly repayments for six months and (2) a commensurate reduction in monthly repayments.

It had said that the first category would be for those who lost their jobs while the second category would be for B40 borrowers, microenterprises as well as small and medium enterprises (SMEs) that must shut down during the current lockdown.

However, in a clarification this morning, the ABM said all the abovementioned categories qualify for the loan moratorium in the first category.

"We would like to reiterate that the moratorium for three months or reduction of monthly instalments by 50 percent for six months is not just for those who have lost their employment," it said in a statement to Malaysiakini.

The ABM explained that the moratorium will apply to the following categories:

1. SMEs that are not allowed to operate during the movement control order (locked-down sectors)

2. Microenterprises that are not allowed to operate during the movement control order (locked-down sectors)

3. B40 recipients of the Bantuan Sara Hidup (BSH) or Bantuan Prihatin Rakyat (BPR) aid.

Meanwhile, Bank Negara Malaysia, in a separate clarification, also reiterated the above arrangement for the loan moratorium.

It further explained that the commensurate reduction in monthly repayments would apply to all borrowers whose incomes are affected.

"For all borrowers who have suffered a reduction in income (including salary, allowances, commissions and household incomes), they are eligible for a reduction of monthly instalments according to the reduced income," it said.

ABM's initial statement yesterday:

 - Mkini