KUALA LUMPUR (March 25): Prime Minister Tan Sri Muhyiddin Yassin has announced a six-month postponement of loan repayment and restructuring of credit card balance and business loans following the COVID-19 outbreak involving at least RM100 billion.
He said the impact of the COVID-19 outbreak has not only raised concerns about health and well-being but the Movement Control Order (MCO) has also raised the people’s concern about financial matters.
“People of all walks of life whether entrepreneurs, farmers, fishermen, daily workers are wondering about their economic position.
“Among the major concerns raised are the repayment of bank loans, both in the case of private borrowers and Small and Medium Enterprises (SMEs) whose businesses have been affected by the outbreak,” he said in a statement today.
Beginning on April 1, local banks will offer a moratorium or postponement of repayment up to six months to individual borrowers and SMEs during this very difficult time, according to the Prime Minister.
For credit cardholders facing financial constraints, they may choose to convert their credit card balance to term loans.
Borrowers can take advantage of the flexibility of the postponement to defer their credit card repayments from April 1 to December 31, 2020, he said.
For the corporate sector, Muhyiddin said businesses can consult with their banks to restructure their repayments to suit their business circumstances.
“This is important to enable companies to remain capable to retain employment and to continue their business activities,” he said.
The government according to him, are currently studying ways to reduce the rakyat’s burden and a more comprehensive and meaningful economic stimulus measures for them and the economy would be launched soon.
He added that the Finance Ministry and Bank Negara Malaysia had been asked to provide more details on today’s announcement in order for the people to fully grasp the benefits offered.