KUCHING, July 21 — DAP’s Bandar Kuching MP Dr Kelvin Yii today urged the federal and Sarawak governments to allocate funds to help those who may face civil suits for the non-payment of loans after the bank moratorium is lifted in September.
He said a specific sum could be channelled to the Legal Aid Bureau, the Bar Council or in the case of Sarawak, the Advocates Association of Sarawak (AAS).
“We just want to make sure that people will get proper access to justice and not be left out just because of their socio-economic conditions, especially as we brace ourselves for the economic impact of the Covid-19 virus,” he said in response to Finance Minister Tengku Seri Zafrul Abdul Aziz’s comments today.
Yii said the Covid-19 pandemic has resulted in many people losing their jobs, a reduction of income, the cancellation or breaching of business contracts, and bank disputes.
“There is also the possibility of an increase in the number of bankruptcies after the lifting of the moratorium,” he said.
Yii said intervention by the courts is normally needed to resolve such disputes, adding that those affected will need to be brought to court to ascertain their ability to obtain the necessary relief specific to their cases.
“However, many of those who are financially affected may not have been able to afford a lawyer,” he added.
Earlier today, Tengku Zafrul said borrowers must begin servicing their loans from October as the repayment moratorium will end as scheduled in September.
He told Parliament that banks will instead take a targeted approach in helping borrowers with restructuring their existing loans.
“The moratorium is for six months, that is until September 2020,” he said.
