BNM: Loan 'restructuring and rescheduling' upon repayment moratorium expiry | The Edge Markets

BNM: Loan 'restructuring and rescheduling' upon repayment moratorium expiry | The Edge Markets


KUALA LUMPUR (July 24): Bank Negara Malaysia (BNM) has told analysts that upon expiry of the loan repayment moratorium by end-September 2020, banks in the country will not extend the scheme but will continue to offer targeted financial assistance in the form of restructuring and rescheduling (R&R) to borrowers who continue to face repayment issues.

Analysts, who participated in the virtual meeting with BNM yesterday, wrote in their notes today that BNM said loans subject to R&R schemes would not be classified as impaired for genuine cases where borrowers faced temporary restraints on their cashflows.

"Nonetheless, MFRS 9 (Malaysian Financial Reporting Standard 9) will remain applicable whereby loans will be subject to the staging process (stages 2 and 3)," Affin Hwang Investment Bank Bhd analyst Tan Ei Leen said.