Bank Negara Malaysia (BNM) has announced an additional allocation of RM2 billion for the Targeted Relief and Recovery Facility (TRRF), as well as the establishment of a RM200 million Disaster Relief Facility (DRF) 2021.

In a statement today, BNM said the additional allocation brings the TRRF to a total of RM4 billion, and the facility is available until Dec 31, 2021, or until full utilisation, whichever is earlier.

“Small and medium enterprises (SMEs) that are recipients of the Special Relief Facility and the National Economic Recovery Plan’s (Penjana) SME Financing are now eligible to apply for TRRF, subject to total financing 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, adding that the updated features of the TRRF may be accessed at its website.

Meanwhile, on the establishment of the RM200 million DRF 2021, BNM said the facility was established to alleviate the SMEs’ financial burden and assist in the resumption of business operations of SMEs affected by the recent floods in districts identified by the National Disaster Management Agency.

The central bank said the DRF 2021 aimed to assist SMEs in covering the cost of repairs and replacement of damaged assets for business use.

“It is available to Malaysian SMEs, including microenterprises, with a maximum financing amount of up to RM500,000 per SME and up to RM75,000 per microenterprise.

“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 cent per annum, inclusive of guarantee fee,” it said.

It added that 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 comprises commercial banks, Islamic banks and development financial institutions regulated by BNM.

Courtesy by :https://www.malaymail.com/news/