Bank Negara: Blanket loan moratorium may not be the best solution

Governor Datuk Nor Shamsiah Mohd Yunus said all banks have their payment assistance plans, including targeted loan moratoriums, which can be offered to borrowers who have lost their jobs or suffered a reduction in income.

KUALA LUMPUR: A blanket loan moratorium may not be the best solution for borrowers following the reimposition of the movement control order (MCO) nationwide, instead they should approach banks to help them meet their debt obligations, according to Bank Negara.

Governor Datuk Nor Shamsiah Mohd Yunus said all banks have their payment assistance plans, including targeted loan moratoriums, which can be offered to borrowers who have lost their jobs or suffered a reduction in income.

“Borrowers can also approach multiple channels that have been set up, including Bank Negara’s Credit Counselling and Debt Management Agency or AKPK, if they require advice or further assistance.

“More importantly, borrowers are getting help that reflect their specific financial circumstances so that they will not incur more cost or debt than necessary and can get back on their feet faster.

“So loan moratoriums, in this respect, may not be the best solution for all borrowers, ” she told reporters following the release of Malaysia’s first quarter 2021 gross domestic product performance yesterday.

The central bank governor was responding to questions on whether Bank Negara would consider another round of moratorium after the government had announced the implementation of a nationwide MCO 3.0 from May 12 until June 7 due to the increasing number of new Covid-19 cases daily. — Bernama