KUALA LUMPUR, May 1 — The Pakatan Harapan secretarial council today urged the Finance Minister to immediately order Bank Negara Malaysia (BNM) and the Association of Banks Malaysia (ABM) to reconsider its stance on imposing interest for the six-month moratorium on loans.
It also requested that banks do not impose any form of interest for as long as the moratorium is in effect, asking them to make sacrifices.
“At a time when the national economy is affected by the extended movement control order, with more and more reports incoming every day on hotels and businesses shutting down, as well as workers with slashed salaries or losing jobs, the banking sector ought to be more concerned with the rakyat's wellbeing,” the council said in a statement.
It said imposing additional interest on loans under the moratorium gives the impression that the sector does not care about the rakyat's fate.
“The banking sector should make sacrifices for the sake of the nation and rakyat. This half-way resolution such as imposing interest during the moratorium will only strengthen the perception that the sector is uncaring.
“We are confident that although banking's revenues will be affected in the short-term should the sector choose to not impose interest, it will ultimately not cause a loss in the long-term,” said the council.
Yesterday BNM announced that hire-purchase loans and fixed-rate Islamic financing would face additional interest charges once the moratorium, which runs from April 1 to September 30, expires.
Borrowers were given the options of either paying off the collective six months' worth of loans without any additional interest charged, or pay slightly more once the regular monthly installment resumes in October 2020.
