No automatic loan moratorium to be implemented in MCO 3.0, contact bank for targeted assistance – BNM

Remember the loan moratoriums the government was giving out to all Malaysian citizens during the first movement control order (MCO)? With the country entering its third large-scale lockdown tomorrow, many will be wondering if that same help will be extended again to assist struggling businesses and individuals.

However, Bank Negara Malaysia (BNM) has come out and said that it won’t be providing blanket moratoriums this time around, given the loosened restrictions on economic activity for the upcoming nationwide MCO, which will run until June 7. This was reported by a number of local dailies, including Malay Mail.

Responding to a question posed at a virtual press briefing whether BMN would consider a second moratorium, governor Datuk Nor Shamsiah Mohd Yunus said that such far-reaching assistance wouldn’t be necessary, as most people will be able to continue working. “While the MCO has been extended, nearly all economic sectors are allowed to operate unlike the previous MCO in 2020,” she said.

Nor Shamsiah added that those in need can still request financial assistance that is tailored to their needs. “Banks are continuing to provide repayment systems including targeted moratoriums to borrowers who have lost their job and income. This will continue as some borrowers need help given the recent MCO.

“Borrowers can go through various existing channels including the Credit Counselling and Debt Management Agency (AKPK) and BNM Telelink that offers financial assistance to those who need them.”

She also said that enacting a blanket moratorium would not be the best solution for everyone, as they are less effective than targeted assistance. “[Borrowers] are getting help that reflects their financial circumstances, so a loan moratorium is not the best solution for all.”

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