Finance Minister: Govt to discuss with banks extension of six-month loan moratorium

KUALA LUMPUR: The government will hold talks with banks with regards to extending the six-month moratorium on loans and financing repayments which ends in September, says Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

"We can't force the banks and will continue to engage with them," he said at a press conference following a visit to the Prasarana headquarters on Sunday (June 28).

He acknowledged that there have been numerous requests for an extension of the moratorium which the banks had voluntarily imposed on themselves.

"There have been requests from those who need more time.

"On the government's part, we are still engaging with the banks and it is really up to them whether they can or cannot," he said.

However, Tengku Zafrul said that it was his personal view that extension of the moratorium could be done in a targeted manner.

He noted the moratorium, when implemented in April, had benefited borrowers irrespective if they had the ability to repay their loans.

"As a personal view, we need to help those who are in need of help. Maybe the way forward is to focus on targeted groups," he added.

Tengku Zafrul also advise borrowers not to wait till the moratorium expires but to start “talking to their banks” on their loan repayments.

"Please go see your bank and discuss restructuring," he said.

He was asked to comment on an announcement by Malayan Banking Bhd (Maybank) on Friday (June 26), that it will not be extending the six-month loan moratorium period that ends in September.

On a separate matter, Tengku Zafrul said ridership on public transportation services such as the LRT, MRT, BRT and Rapid KL had increased by 40% since the launch of the My30 monthly pass.

He added that some 62,000 My30 passes were sold since June 15 with the numbers expected to increase following the gradual reopening of schools and recovery of the economy.