Tuesday, July 30, 2013

Koguru Appeals To Bank Negara To Reconsider Shorter Loan Repayment Period

BESUT, July 29 (Bernama) -- Bank Negara Malaysia (BNM) needs to review the regulation on reducing the repayment period for loans taken from cooperatives which is expected to hinder the growth of cooperatives whose members generally comprise civil servants.

Source from (Bernama): http://www.bernama.com/bernama/v7/ge/newsgeneral.php?id=966838
Published: July 30, 2013

Koperasi Guru-Guru Terengganu Berhad (KOGURU) chairman, Alias Yahya said the regulation enforced by the BNM effective July 1 would to a certain extent affect the activities of credit cooperatives such as the Koguru in channelling loans to its members totalling more than 9,000.

He said the credit cooperatives were set up to look after the welfare of the members besides generating their economy and not purely to make profits.

He said that as a cooperative that was set up more than 45 years ago, its role in helping the civil servants, particularly the teachers, had been most effective in resolving various problems especially in getting immediate help to pay for family expenses, education, medical care, and house and vehicle repairs.

"The new regulation clearly is a burden especially to the new teachers who are still earning a low salary and with the deduction being limited to 10 years, they had to pay make a bigger repayment instalment," he told Bernama, here today.

-- BERNAMA 

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