CBP UNVEILS CB-PRIHATIN PROGRAMME WORTH OVER RM100 MLN

KUALA LUMPUR, April 8 -- Co-opbank Pertama Malaysia Bhd (CBP) is setting aside more than RM100 million for its CB-Prihatin Programme aimed at assisting stakeholders affected by the COVID-19 outbreak. 

President and chief executive officer Mohd Nor Abd Razak said the programme, approved by the CBP board today, was in response to the government's Prihatin Rakyat Economic Stimulus Package unveiled on March 27 and the Additional Prihatin SME Economic Stimulus Package announced on April 6, 2020.

In a statement, he said the programme consisted of three packages -- CB-Prihatin Financing Package for Small and Medium Enterprises (SMEs) and Co-operatives, CB-Prihatin (COVID-19) Package, and CB-Prihatin Employer Package.

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He said RM100 million would go to the first package, which allows for a nine-month deferment on financing repayment (principal) and offers a low effective profit rate (effective cost of fund + one per cent per annum).

In addition, CBP will foot half of the legal fee involved.

According to Mohd Nor, CBP will also offer a moratorium on financing repayment obligation to eligible corporate (small and medium enterprises) and co-operative customers from April 1 until Sept 30, 2020.

“For credit cooperatives, a moratorium will be given if they also offer a moratorium to their customers,” he said.

In addition, he said, new customers who secured personal loans after April 1, 2020, could apply to defer repayment of the instalments for three months, subject to CBP’s approval.

"This package is available until Sept 30, 2020, at a profit rate of 3.45 per cent per annum,” he said.

Meanwhile, RM500,000 has been earmarked for the second package, CB-Prihatin (COVID-19), which will offer financial assistance to victims of the contagion and provide personal protective equipment to frontliners in the fight against the pandemic.

Under the CB-Prihatin Employer Package, RM400 will be given monthly from April until September, 2020, to eligible CBP staff to ease their families’ financial burden due to COVID-19.

Mohd Nor said the CBP board had also approved an interim dividend of three per cent for the 2019 financial year, while the balance would be paid out after the annual general meeting in September.

-- BERNAMA