KUALA LUMPUR, July 29 ― Prime Minister Tan Sri Muhyiddin Yassin said today lenders will continue to give assistance to small and medium businesses affected by the fallout from the Covid-19 pandemic.
Depending on the borrower’s financial situation, banks may allow borrowers to service the interests of their loans alone or apply for an extension of their loan duration.
“Banks have given their commitment to help all individual borrowers or SMEs be it traders, petty traders or the self-employed who are affected by Covid-19,” Muhyiddin said on live television.
Muhyiddin had earlier announced the extension as part of his Perikatan Nasional (PN) government’s effort to help retrenched workers.
Banks have already given a six-month loan moratorium that will end in September, as part of the PN government’s RM260 billion stimulus package unveiled in April to combat the economic fallout wrought by the coronavirus pandemic.
Finance Minister Datuk Seri Tengku Zafrul said earlier this week the government estimated the moratorium to cost lenders RM1.06 billion.
The moratorium extension is estimated to benefit three million individuals and SMEs.
Banks have also expressed willingness to extend assistance to anyone who appeals, Muhyiddin said.
“I hope this extension will elevate you from the economic difficulties you face because of Covid-19,” he added.