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KUALA LUMPUR: Although the six-month automatic loan moratorium was beneficial to the country, it is important to get out of the moratorium period so that the economy can begin to recover.
CIMB Group Holdings Bhd
Executive Director Datuk Abdul Rahman Ahmad said that any decision to extend the moratorium beyond September 30 would be a “populist movement.”
“The implications (of expanding it) need to be understood,” he said at a round table with the CEOs of selected banks and the National Agency for Credit Counseling and Debt Management (AKPK).
Yesterday, bank CEOs urged those who cannot make loan payments after Sept. 30 to come forward and seek help from lenders.
“For those who cannot pay, we will help them, but it is important that the banks come out of the automatic moratorium period and re-lend to the economy to ensure it recovers from the pandemic,” said Abdul Rahman, who chaired the meeting, he said.
In April, the government introduced relief measures for consumers and businesses in the wake of the Covid-19 pandemic, including a six-month moratorium on borrowers that allowed them to defer payments on their loans to banks.
The moratorium ends on September 30.
Bankers said yesterday that banks remained committed to providing payment flexibility and were working to contact borrowers who might need help.
As of September 11, banks have contacted more than two million borrowers to offer loan repayment assistance.
Of this number, more than 380,000 have said they need help.
Meanwhile, RHB Bank’s director of retail banking, Rakesh Kaul, said that “naturally” banks would face deterioration of their assets as Covid-19 impacted on loan repayments, as already seen in the last quarter. .
“However, we believe it will normalize in the next three to six months,” he said.
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