IN THE NEWS: Banking institutions will grant an automatic moratorium on all loan/ financing repayments/payments, principal and interest by individuals and SME borrowers for a period of six months from April 1, 2020.

Banking customers, including individuals and small and medium sized enterprises (SMEs) will be allowed to delay the repayment of their existing loans, including mortgages and hire-purchases, for a period of six months – excluding credit card payments.

This is part of the central bank’s new measures to assist borrowers experiencing temporary financial constraints due to the Covid-19 outbreak.

The letter was sent out by Bank Negara Malaysia (BNM) to banks, Islamic banks, investment banks and development financial institutions.