Govt move to defer loan repayments, credit cards to cover RM100bil worth

PUTRAJAYA: The move by the government to defer loan repayments and two other measures to help individuals and businesses weather the effects of the movement control order (MCO) will cover a sum that amounts to at least RM100bil.

According to the government's announcement, individuals and small and medium enterprises would be given a six-month reprieve on the repayment of their existing loans, including mortgages and hire purchases.

Apart from this, credit card card holders can choose to convert the outstanding balances into term-loan.

In addition, the corporate sector can discuss with the banks to restructure their loan repayment that is suitable to their business.

"This is important so that companies can continue to afford to retain employment and carry out their business activities soonest," said Prime Minister Tan Sri Muhyiddin Yassin in a statement on Wednesday (March 25).

Muhyiddin said the government was aware that the impact of the Covid-19 not only caused health concerns among the people, but that the movement control order (MCO) had also affected them financially.

"The public, from entrepreneurs to farmers, from fishermen to those paid daily wages, are concerned about their finances, particularly how to make loan repayments.

"The government is studying various measures that can ease the burden of the people, and we will launch another economic stimulus soon," he said.

On March 23, Muhyiddin said a more comprehensive stimulus package would be unveiled on March 30 that would offer mid-term measures to strengthen the economy.

He said the measures to be announced would help strengthen the economy and provide some guarantee to the lives of the people.