In a joint statement today, the Association of Banks in Malaysia and Association of Islamic Banking and Financial Institutions Malaysia confirmed that credit card debts are not covered in the moratorium.

“For credit card facilities, banks will offer to convert the outstanding balances into a three-year term loan/financing with reduced interest/profit rates to help borrowers better manage their debt.”

In his speech yesterday, Prime Minister Muhyiddin Yassin announced a loan deferment programme available to all Malaysians, microenterprises and selected SMEs that have been affected by the pandemic.

According to finance minister Tengku Zafrul Aziz today, those who opt for the programme will not be subject to additional fees or compounded interest during the period of the deferment.

The two banking groups said today that under the new loan deferment scheme, those seeking a moratorium will receive immediate approval from their bank for loans approved before July 1, and not in arrears for more than 90 days prior to one’s application.

“Banks are committed to making the process as easy and seamless as possible with no supporting documentation requested upfront for approval purposes.

“Given the possible large volume of requests and the lockdown constraints on working protocols that all member banks are operating under, there may be some initial operational challenges. Customers can rest assured of the full commitment by member banks to ensure all issues will be addressed on a timely basis.”

In light of movement restrictions, borrowers are encouraged to get in contact with their banks through their online channels or over the phone.

“Agensi Kaunseling dan Pengurusan Kredit stands ready to provide the necessary advice and guidance to both individual borrowers and microenterprises, including options for debt restructuring.”