Extend bank loan moratorium another 6 months, DAP tells govt

 

DAP today urged the federal government to extend the bank loan moratorium and waivers on interest that are expiring soon.

Its secretary-general Lim Guan Eng said there have been many complaints about poor business sentiment and economic conditions, on top of an increase in prices of goods.

"Even though the Department of Statistics (DOS) reported that annual inflation rose by 2.5 percent in 2021 as compared to 1.2 percent deflation experienced in 2020, the reality on the ground is much higher rising prices, especially food.

"DOS reported that the consumer price index (CPI) for Dec 2021 shot up 3.2 percent compared to the same month in 2020, surpassing the average monthly CPI inflation rate over the past decade (2011-2021) of 1.9 percent," he said in a statement.

According to Lim (above), the banking industry is capable of shouldering the burden of an extended moratorium and interest waivers.

"An extension of the bank loan moratorium and interest rate waivers by six months will help to save lives and livelihoods," he stressed.

He added that this is considering the banking industry recorded RM20 billion in profit after taxes last year, even when they had to bear the cost of interest rate waivers and bank loan moratorium last year.

In June last year, then prime minister Muhyiddin Yassin announced a RM150 billion financial aid package called Pemulih (National People's Well-Being and Economic Recovery Package).

The package included a six-month bank loan moratorium to all borrowers, regardless of their income levels.

In December, Prime Minister Ismail Sabri Yaakob said Putrajaya has requested banks to continue assisting borrowers facing financial difficulties in repaying their loans and to postpone legal action against defaulting borrowers. - Mkini