Malaysia's MoF Requests Banks to Consider Termination of Finance Charges during the Moratorium Period

Malaysia's Ministry of Finance (MoF) has requested financial institutions to consider putting an end to unpaid interest (on hire-purchase loans) and profit (on fixed-rate Islamic financing) during the six-month moratorium period.

Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of Finance, stated that Bank Negara Malaysia (BNM) had announced these loans should be subject to increased finance charges as soon as the moratorium ends as per the 2009 National Bank Act. However, the MoF wished to take proactive measures to seek alternative options together with BNM and the banking institutions, in order to provide the best solution to affected borrowers.

The Minister also admitted that th...