We refer to our statements on the moratorium measure issued on 25 March 2020 and on additional steps to operationalise the moratorium for hire-purchase loans and fixed rate Islamic financing released today.

The statement today is to address procedural issues which will give legal effect to the moratorium in accordance with the Hire-Purchase Act 1967 and Shariah requirements.

BNM wishes to reiterate that borrowers do not need to apply for the moratorium. They only need to complete the documentation required to give legal effect on the moratorium. Borrowers will be advised by their banks on the next few simple steps to do this.

The moratorium is meant to ease cash flows for borrowers who are affected by the COVID-19 pandemic. As highlighted in BNM’s announcement on 25 March, borrowers were advised that interest/profit will continue to accrue on deferred payments and they should consider this in deciding whether they wish to take up the moratorium.

The 25 March 2020 statement reads:

“It is important to note that the interest/profit will continue to accrue on loan/financing repayments that are deferred and borrowers will need to honour the deferred repayments in the future. Borrowers should therefore ensure that they understand and discuss with their banking institutions on the options available to resume their scheduled repayments after the deferment period. Individuals and SMEs that do not wish or need to avail of these flexibilities can continue with their current repayment structures.”

Customers who do not wish to take up the moratorium can still do so by informing their banks.

See also:

• Frequently Asked Questions

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