Zafrul: RM6.4b in estimated losses for banks during moratorium period

KUALA LUMPUR (July 27): Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said the banking sector is estimated to see losses of RM6.4 billion during the loan moratorium period, between April and September.

Responding to a question from former finance minister Lim Guan Eng (PH-Bagan) on costs borne by banks due to the moratorium and further assistance in the event there is a second lockdown, Tengku Zafrul said banks face losses of approximately RM1.06 billion per month based on Malaysian Financial Reporting Standards (MFRS) 9.

"If the MCO (Mandatory Control Order) is extended, be sure that the government will be assessing the situation and developments," said the minister.

Lim also asked whether the Prihatin special grant will be extended, especially due to the potential for the enforcing of a second round of lockdown measures in the event that the number of Covid-19 cases increase in the country.

"To date, as many as 545,000 micro SMEs have benefitted from the RM2.1 billion Prihatin special grant. It was supposed to be for 700,000 micro SMEs. We will look into this again. We need to give as much assistance to as many micro SMEs as possible," said Tengku Zafrul.

Stay safe. Keep updated on the latest news at www.EdgeProp.my
Click here for more property stories