KUALA LUMPUR (Feb 5): Bank Negara Malaysia (BNM) announced today an additional allocation of RM2 billion for the Targeted Relief and Recovery Facility (TRRF) and the establishment of a RM200 million Disaster Relief Facility (DRF) 2021.
BNM said in a statement it would increase the allocation for the TRRF by another RM2 billion, increasing the total allocation of the facility to RM4 billion.
The facility will be available until Dec 31, 2021 or full utilisation, whichever is earlier, it said.
The bank also noted that small and medium enterprises (SMEs) that are recipients of the Special Relief Facility and PENJANA SME Financing are now eligible to apply for the TRRF, subject to a total financing limit not exceeding RM500,000.
For SMEs in the tourism and tourism-related services subsectors, assistance remains available under the existing PENJANA Tourism Financing, it said.
Further details are in Appendix 1 below.
Meanwhile, BNM said the DRF 2021, with an allocation of RM200 million, is established to alleviate the financial burden and assist in the resumption of business operations of SMEs affected by recent floods in districts identified by Agensi Pengurusan Bencana Negara as flood disaster areas.
According to the central bank, the DRF 2021 aims to assist SMEs in covering costs of repairs and replacements of damaged assets for business use.
It is available to Malaysian SMEs, including microenterprises, with a maximum amount of financing of up to RM500,000 per SME and up to RM75,000 per microenterprise, it said.
It also said the tenure of the financing is up to five years, including a moratorium period of six months on both principal and interest payments.
The financing rate is up to 3.50% per annum, inclusive of the guarantee fee; the facility will be available until July 31, 2021 or full utilisation, whichever is earlier.
“Affected businesses can apply for financing at a concessionary rate from participating financial institutions which comprise commercial banks, Islamic banks and development financial institutions regulated by BNM,” said the central bank.
Further details of the DRF 2021 are provided in Appendix 2 below. More information is also available at www.bnm.gov.my/sme-financing.
SMEs in other sectors can access the various facilities available under BNM’s Fund for SMEs. Details of these funds are available at www.bnm.gov.my/covid19/.
The public may also contact BNM at bnm.my/LINK if they face any difficulties with respect to the above facilities.
Source: https://www.theedgemarkets.com/article/bnm-set-aside-extra-rm2b-targeted-relief-and-recovery-facility-set-rm200m-disaster-relief