Bank: 90 percent of borrowers took up 6-month moratorium offer for car loans

Only 10 percent of hire purchase borrowers of have opted out of the 6-month moratorium given by Bank Negara, according to data by RHB Investment Bank.

In its latest bi-weekly newsletter dated 29-April, the investment bank downgraded its buy/sell call for CIMB, from Neutral to Sell.

Part of the reason, according to the investment bank’s analysts is “…possibility of provisions for a macro overlay on expected credit loss and modification losses on the present value of deferred cash flows due to the repayment moratorium.”

It noted that only about 10 percent of borrowers have opted out of the 6-month moratorium. The figure is for consumer loans is 6-7 percent, and 10 percent of SME loans. The bank has also received applications for a repayment moratorium for 20 percent of its corporate loans.

In a related news, banks are expected to communicate to their customers on the specifics of the 6-month moratorium starting today. It is widely expected to include interest charges on the total amount of deferred payment. More here.