KUALA LUMPUR, March 20 — Agrobank has announced a suite of measures along with initiatives undertaken by Bank Negara Malaysia (BNM) to provide relief to small and medium enterprises (SMEs) hit by the Covid-19 pandemic.
It said the measures are an immediate moratorium of up to six months for the monthly installment payments of financing to its existing customers and restructuring of their financing to help with their cash flow situation.
“As the outbreak escalates, Agrobank will continue to be very active in providing financial relief measures in assisting SMEs to weather the storm of Covid-19 pandemic,” covering president and chief executive officer Khadijah Iskandar said in a statement today.
Agrobank, through BNM’s Stimulus Package 2020, is also providing a RM2 billion Special Relief Facility (SRF) which will be deployed in the form of working capital to assist SMEs that are adversely impacted by Covid-19.
Khadijah said this facility is vital for SMEs in the agriculture and agrofood sectors to sustain their business operation and alleviate short-term cash flow problems.
“Through this programme, Agrobank will provide a prompt, collateral-free financing facility of up to RM1 million per SME with a competitive financing rate capped at 3.75 per cent per annum,” she said.
She said eligible SMEs can obtain the financing facility with Agrobank for a tenure of up to 5.5 years, including a six-month grace period.
Another initiative taken under BNM’s Stimulus Package 2020 is the introduction of a RM1 billion Agrofood Facility and a RM300 million SME Automation and Digitalisation Facility.
“We continue to monitor the developments of Covid-19 and are always prepared to support our customers with the best financial solution especially during this difficult time,” she said.
She said the bank’s employees who work directly with the customers are trained to identify, assist and provide them with the right financial support to address their unique business needs. — Bernama
