FM Suggests - Waive Accrued Interest

Finance Minister Tengku Datuk Seri Zafrul Aziz has suggested that accrued interest or profit imposed by financial institutions on hire purchase customers be waived during the six-month moratorium period. He said there were banks that offered the loan moratorium without charging accrued interest or compounded interest on the loans.

Tengku Zafrul said the issue was under the purview of the Bank Negara, but the ministry had taken a proactive step to discuss with it, as well as the banks, for a decision based on the people's needs.

Tengku Zafrul said recently the mass media and people had raised the issue, and there had been confusion over the interests as a result of inaccurate source of information. However, Bank Negara had on Friday (May 1) clarified through its "Frequently Asked Questions" for the management of hire purchase and fixed-rate Islamic financing loans on its website.