RM500 million special relief facility for flood-affected business

Bank Negara Malaysia (BNM) is providing a special relief facility of RM500 million to alleviate problems faced by businesses affected in the recent floods.

Under the facility, the businesses could obtain financing at a concessionary rate from any commercial bank, Islamic bank, Small Medium Enterprise Development Bank Bhd, Bank Kerjasama Rakyat Malaysia Bhd, Bank Simpanan Nasional and Bank Pertanian Malaysia Bhd.

"We would also provide 60 percent guarantee to the financing through Credit Guarantee Corporation Bhd with no additional collateral required.

"The facility is available to affected SMEs in the districts defined as flood disaster areas by the National Security Council and Prime Minister's Department," BNM said in a statement.

The maximum amount of financing is RM500,000 per group of company with effective financing rate chargeable up to 2.25 percent per annum and tenure up to five years with a grace period of six months.

"Businesses needing assistance can approach the financial institutions from today until June 30, 2015 or upon exhaustion of the allocation," it added.