Angkasa and Cuepacs to discuss Bank Negara's new loan requirement

The Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa) will discuss with the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) to examine the impact of the Bank Negara (Bank Negara) new loan requirements on civil servants.

"The discussion scheduled to be held on Tuesday will discuss with Cuepacs on a thorough study on the requirement to limit (repayment for) personal loans to 10 years and housing loan to 35 years for civil servants," said president Datuk Abdul Fattah Abdullah when contacted by Bernama, here.

Abdul Fattah added that the new requirement would burden civil servants if the loan period was limited as their salaries would be deducted more than before and thus, would affect the financial performance of cooperatives under Angkasa.

"I agree with the Bank Negara to reduce the amount of debt by Malaysians but for me, we need to look back at the condition ... should not only be for civil servants, "he said.

On July 5, the Governor of Bank Negara Tan Sri Dr Zeti Akhtar Aziz announced that the central bank had set a maximum period of 10 years for personal loans and 35 years for housing loans for civil servants to curb household debts which currently stood at 83 percent of Gross Domestic Product (GDP).