BANK ISLAM OFFERS 6-MONTH DEFERMENT OF FINANCING REPAYMENTS

KUALA LUMPUR, March 25 -- Bank Islam Malaysia Bhd (Bank Islam) will automatically defer or suspend all financing repayments for a period of six months for individual borrowers, small and medium-sized enterprises (SMEs) and corporate borrowers effective April 1, 2020.

Chief executive officer Mohd Muazzam Mohamed said the bank welcomes and fully supports Bank Negara Malaysia’s announcement today that it has ordered all banks to grant an automatic six-month moratorium (deferment) of all loan/financing repayments with the exception of credit card balances.

The central bank’s move is aimed at mitigating the plight of borrowers impacted by the consequences of the COVID-19 outbreak including the movement control order (MCO).

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In a statement, Mohd Muazzam said customers who had previously accepted Bank Islam’s COVID-19 moratorium or applied to reschedule and restructure their financing obligations could now opt out of such an arrangement if they wish.

The customers may then opt in to the deferment measures sanctioned by the central bank, on condition they fulfil the criteria, he said.

He said the offer is only applicable to performing financing, denominated in Malaysian ringgit, and not in arrears for more than 90 days as of April 1, 2020.

For credit card facilities, Bank Islam has offered to convert the outstanding balances into a three-year term financing with reduced profit rates to help borrowers better manage their debt.

“Bank Islam is preparing for the implementation of the financial relief and will make a further announcement in due time and announce the updates on its official website www.bankislam.com, or social media platforms such as Facebook and Instagram,” he added.

-- BERNAMA