MCO 3.0: Blanket loan moratorium may not be the best solution, says BNM

KUALA LUMPUR: A blanket loan moratorium may not be the best solution for borrowers following the re-imposition of the Movement Control Order (MCO) nationwide; instead they should approach banks to help them meet their debt obligations, Bank Negara Malaysia (BNM) said.

Governor Datuk Nor Shamsiah Mohd Yunus said all banks already have their payment assistance plans, including targeted loan moratoriums, which can be offered to borrowers who have lost their jobs or suffered a reduction in income.

"Borrowers can also approach multiple channels that have been set up, including BNM's Credit Counselling and Debt Management Agency (AKPK), if they require advice or further assistance.

"More importantly, borrowers are getting help that reflect their specific financial circumstances so that they will not incur more cost or debt than necessary and can get back on their feet faster.

"So loan moratoriums, in this respect, may not be the best solution for all borrowers," she told reporters following the release of Malaysia's first quarter 2021 Gross Domestic Product performance today.

Nor Shamsiah was responding to questions on whether the central bank would consider another round of moratorium after the government announced the nationwide MCO 3.0 from May 12 until June 7 due to the increasing number of new COVID-19 cases daily.

-- BERNAMA