(Bloomberg) -- Malaysia's banks will offer broader loan deferrals that will involve 100 billion ringgit ($23 billion) of funds as the country seeks more ways to soften the pandemic's impact on its economy.
Banks will offer six-month deferrals for all loans held by individuals and small businesses and let people convert their credit card debt into a three-year term loan, the central bank said in a statement Wednesday. Corporate borrowers will be allowed to defer or restructure their borrowings in order to protect jobs and resume activities once the situation improves, according to the statement.
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The measure is the latest in a series of stimulus steps unveiled by Malaysia, which has imposed sweeping restrictions on movement to curb Southeast Asia's highest number of coronavirus infections.
Among the changes:
- Banks can draw down capital conservation buffer of 2.5%, operate below minimum liquidity coverage of 100% and use regulatory reserves set aside during times of strong loan growth
- Central bank to lower minimum Net Stable Funding Ratio to 80%, from 100%, when it's implemented on July 1
The government is set to announce a more comprehensive package on March 30, a day before the current lockdown is set to end. That will follow billion-dollar measures rolled out as early as February to help the economy, including lowered minimum pension contributions and discounts to electricity tariffs.
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