BNM announces RM500m Disaster Relief Facility for SMEs

PETALING JAYA: Bank Negara Malaysia (BNM) yesterday said a RM500 million Disaster Relief Facility would be made available from today for small and medium enterprises at a concessionary rate, to help alleviate the financial burden and assist in the resumption of operations for businesses affected by the recent floods in the northern states of Peninsular Malaysia. Under this facility, affected businesses can obtain financing at a concessionary rate from any commercial bank, Islamic bank and development financial institutions regulated by BNM.

BNM will provide a 60% guarantee on the financing obtained through Credit Guarantee Corporation Malaysia Berhad.

The salient features of the facility are available to Malaysian SMEs affected in the districts identified by Agensi Pengurusan Bencana Negara as flood disaster areas. The maximum amount of financing is RM500,000 per group of companies; financing is for the purpose of repairs/purchases of assets to replace those damaged by floods and working capital; effective financing rate chargeable is up to 2.25% per annum; and the tenure of the financing is up to five years, with a grace period of six months on financing repayments.

The facility is open for application until May 31, 2018. Financial institutions have also committed to give top priority to all requests for assistance from customers who have been affected by the flood.