KUALA LUMPUR, Feb 11 ― The Association of Banks in Malaysia (ABM) announced today measures to help customers affected by the Wuhan coronavirus outbreak, including a moratorium on loan repayments to help businesses stay afloat.
“Concerted efforts by our member banks are underway to ensure that bank customers are able to weather through during this trying time and to ensure business continuity,” ABM said in a statement.
“In addressing the adverse financial circumstances faced by borrowers brought upon by the 2019-nCoV outbreak, options may involve loan rescheduling & restructuring and/or moratorium on loan repayment(s),” it added.
The novel coronavirus, which experts have traced to a wet market in Wuhan, the capital city of Hubei province in China, is also known as the 2019-nCoV.
China reported 108 new coronavirus deaths today, a daily record, bringing the total number of people killed in the country to 1,016, although the number of new cases have fallen, Reuters reported this morning.
Just last week the World Health Organisation declared the outbreak a global health emergency, prompting hundreds of countries to shut down its borders and block flights into China.
The lockdowns, which started around mid January, have hit key stock markets like Hong Kong and Singapore, and have dragged global trade down.
Putrajaya has said it expects the epidemic to affect local businesses.
ABM has advised Malaysian businesses that experience financial difficulties arising from the current 2019-nCoV outbreak to consult with their banks as soon as possible to discuss their options pertaining to their loan commitments and or repayments.
“The financial industry is cognisant of the current 2019-nCoV outbreak affecting businesses and industries globally and locally,” the group said.
“In view of the situation, ABM would like to state that our member banks stand ready to assist with coordinated measures to businesses affected by the 2019-nCoV outbreak.”
The Public Bank Group was the first to offer a moratorium for borrowers. Yesterday the bank said customers affected by the outbreak will be allowed to delay up to six months the monthly instalment payment of loans and financing.
The bank would also accommodate customer requests to restructure or reschedule their loans and financing to help businesses have liquidity.
