Blanket moratorium - Zafrul explains no legal ability to force banks
The latest economic aid package for the people amid the movement control order did not include a blanket loan moratorium as the government cannot compel banks to do so, said Finance Minister Tengku Zafrul Abdul Aziz.
According Zafrul, the moratorium offered to those in the B40 group, those who lost their jobs, and small and medium businesses that cannot open is what banks had agreed to in...
The latest economic aid package for the people amid the movement control order (MCO) did not include a blanket loan moratorium as the government cannot compel banks to do so, explained Finance Minister Tengku Zafrul Abdul Aziz.
According to Zafrul, the moratorium offered to those in the B40 group, those who lost their jobs, and small and medium businesses that cannot open is what banks had agreed to in their discussion with Bank Negara Malaysia.
“You have to understand, the government does not control or own the banks, right?
“This is the discussion between Bank Negara and the banks. We do not have any legal ability to force banks to do (what we want).
“Under the Pemerkasa Plus, we are providing an automatic loan moratorium to the bottom 40 group. If they apply, they can get it," he told a press conference today.
“Those who lost their jobs - included those from the middle 40 or top 20 group - will have their loan moratorium approved automatically,” he added.
Microentrepreneurs and small-and-medium enterprises (SMEs) which are barred from operation during the total lockdown are entitled to the loan moratorium, he said.
Zafrul added that those eligible can opt for a full moratorium of up to three months or get a 50 percent reduction on repayments for six months.
“If you can name me one country that has done this, please do so,” he said.
Earlier today, Umno leader Puad Zarkashi had questioned why the government did not provide a blanket loan moratorium as the total lockdown would impact everyone.
