In hindsight, we know that Malaysia was one of only a handful of countries worldwide that implemented an automatic moratorium. Most countries implemented a scheme similar to our current Repayment Assistance (RA) and Targeted Repayment Assistance (TRA), strictly based on those who needed it. Let’s take a deeper look into the moratoriumThe impact of the moratorium was immediate and indeed significant to the banking industry. Moratorium is available for those in needThis brings me to the point of why a targeted moratorium is the way to go and not an automatic moratorium. Firstly, an automatic moratorium results in aid being channeled to everyone including the wealthy and those whose salaries/income are unaffected.

Source: The Edge Markets June 14, 2021 03:56 UTC