BNM establishes special relief facility for businesses affected by floods
KUALA LUMPUR: Bank Negara Malaysia (BNM) established a special relief faci lit y of R M 5 0 0 mi l lion to alleviate the financial difficulties faced by businesses that have been affected by the recent f loods.
The central bank in a press statement recently said under the f a c i l i t y, affected businesses could obtain financing at a concessionary rate from any commercial bank, Islamic bank, Small Medium Enterprise Development Bank Berhad ( SME Bank), Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat), Bank Si mpa na n Nasiona l ( BSN ) and Bank Pertanian Malaysia Berhad (Ag robank).
BNM said it will provide 60 per cent guarantee to the financing obtained through Credit Guarantee Corporation Bhd (CGC).
It added no additional c ollateral is required for the application for financing under the facility.
Meanwhile, the central bank revealed that some of the sailent features of the financing facility include for Malaysian small and medium enterprises (SMEs) affected in the districts defined by the National Security Council, Prime Minister’s Department as f lood disaster areas, maximum amount of financing is RM500,000 per group of companies, effective financing rate chargeable is up to 2.25 per cent per annum and the tenure of the financing is up to five years, with a grace period of six months.
Additiona l ly, businesses which need assistance can approach participating financial institutions.
The special relief facility is available until June 30 or upon exhaustion of allocation, whichever e a rl i e r.
Furthermore, the f i n a nci n g f aci l it y a nd s ome of the measures announced by financial institutions and insurers, including the temporary deferment of existing financing repayments, restructuring or rescheduling of financing and waivers of transaction fees and /or f inance prog rammes, are intended to alleviate the
is financial burden and assist i n t he r e su mpt ion of SM E s’ business operations.
The central bank said members of the public are advised to contact the customer service centres of their financial institutions directly for enquiries or assistance needed.
The public may also contact BN M’s TELELIN K at 1-300-88-5465 for additional information or assistance.