A LOAN moratorium is a Band-Aid on a bullet wound for those who are trying to survive, concerned Malaysians said on social media.

They said the six-month loan moratorium for individuals across all income groups announced under the Pemulih economic aid package yesterday might push those in hand-to-mouth existence into further debt.

Cassandra Lee, an estate planning and litigation lawyer, had voiced her concerns on the moratorium a day before the Pemulih announcement.

She wrote: “Moratoriums just mean that we stay in debt longer, end up paying more to the banks and either way, the banks still win. Think: compounding interest.

“It’s a temporary solution for many but let’s face it, many people need more than just a moratorium to get back on their feet.”

Last night, she added: “Mengambil kesempatan dalam kesempitan (taking advantage during survival). That’s what compound interest during moratoriums looks like to me.”

“Coz chances are a lot of people need the moratorium just to eat. Which bank is gonna waive interest this time? Let’s see…”

Social media user Darren G. said: “Moratorium interests still ongoing, banks will never lose money but the people will. The PM announced a moratorium but didn’t tell the full story. This is not aid but killing us softly later.”

Yesterday, two former finance ministers, Lim Guan Eng and Najib Razak had also asked the government to clarify if the loan moratorium would be interest-free.

They said, while the latest aid package was awaited by many, there are still some shortcomings that need to be looked into and explained about the loan moratorium, saying it is not an automatic moratorium, while it is also interest-bearing.

Aysha Ridzuan, a sports journalist, warned people to be cautious when applying for the moratorium.

“Apply for a moratorium if you really need it and if it helps you have more cash in hand for the time being, but always, always read the fine print carefully. Don’t trust banks,” she tweeted.

Meanwhile, others said the moratorium is barely a solution to lift the financial burden from the people.

“At this point, a moratorium is the bare minimum people need to even breathe. I fear that even that is not enough for many,” said Syahredzan Johan, lawyer and political secretary to DAP veteran Lim Kit Siang.

A communications specialist turned e-hailing driver Alawiyah Yussof said: “Dear PM @MuhyiddinYassin, withdrawal of EPF funds and moratoriums should not be classified as Recovery Package. It’s a Self Aid & Survival Package.”

Prime Minister Muhyiddin Yassin had said applications for the loan moratorium will be opened on July 7, and applicants will only have to apply for and agree to the terms and conditions. – June 29, 2021.