WE are currently in MCO 3.0 lockdown mode, and there have been calls by various parties for an automatic blanket moratorium, like what we had during MCO 1.0. Among the various measures through the Prihatin package, Bank Negara and the banking sector agreed to provide a six-month automatic blanket moratorium for all borrowers. In all cases, borrowers just need to choose what relief they need and automatic approval will be given upon application. Hence, why are we using a sledgehammer to crack a nut? A blanket moratorium will mean that banks will not receive loan repayments to lend to others, but must still pay the interest/profit to depositors.
