According to Tengku Zafrul, the administration brought up the issue with the banks during a recent meeting, and they agreed to it. (Photo courtesy of 123rf)

PUTRAJAYA, June 29 (A+A): According to Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, banks will forgive compounded interest and penalty costs incurred during the six-month loan moratorium under the National People’s Well-Being and Economic Recovery Package (PEMULIH).
He said the government brought up the issue with the banks at a recent meeting, and they agreed to it.
“Report and protest if the banks raise a compound [interest] and levy a penalty [on the moratorium],” he stated at a press conference here today.
Prime Minister Tan Sri Muhyiddin Yassin announced yesterday a six-month suspension on loan payments for all debtors, regardless of income.
Meanwhile, Tengku Zafrul encouraged borrowers who intend to apply for the moratorium to speak with their banks about the mode of repayment.
“Every bank has a different strategy,” he added, adding that “you (borrowers) should address this with the relevant institutions.”
The minister stated that the PEMULIH moratorium might assist individual borrowers as well as small and medium businesses (SMEs) in managing their cash flow at this difficult time.
“We’ve encouraged banks to keep giving automatic approval to impacted borrowers, including those in the B40, M40, and T20 (lowest 40%, middle 40%, and top 20%) groups,” he said.
Meanwhile, Tengku Zafrul voiced confidence in the domestic financial system’s ability to withstand the effects of the loan repayment delay.
“I believe the banks are also harmed,” he said, “but I believe this (the moratorium) is something that needs to be done to help the people in need.”
Also read:The Prime Minister announces an automatic blanket debt repayment moratorium for people, as well as the i-Citra EPF withdrawal scheme.
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