Malaysia: Bank Negara offers financing lifeline

• Bank Negara Malaysia announced measures in support of efforts by banking institutions to assist individuals, small and medium enterprises (SMEs) and corporations to manage the impact of the Covid-19 outbreak.
• The measures include a six-month deferment for all loan/financing repayments beginning Apr 20, applicable for all ringgit-denominated performing loans that have not been in arrears for more than 90 days as at 1 Apr 20.
• For individuals and SMEs that do not wish or need to use these flexibilities, BNM said they can continue with their current repayment structures.
• On loans for corporations, the central bank has provided appropriate time-bound flexibilities for banking institutions to report deferred/restructured facilities in the Central Credit Reference Information System (CCRIS), taking into account the temporary nature of disruptions faced by borrowers.
• The central bank pointed to ample liquidity in the banking system to support the above financial intermediation activities.
• This follows the recent reduction in statutory reserve requirement ratio, which has released approximately MYR30bn worth of liquidity on top of excess liquidity of MYR160bn.

External Link : https://www.theedgemarkets.com/article/bnm-announces-6month-loan-moratorium-smes-and-individuals-confirms-edge-financial-daily