LPPSA: No moratorium for public housing financing

by NUR HAZIQAH A MALEK/ pic by TMR FILE

THE Public Sector Home Financing Board (LPPSA) has confirmed that there will be no delay or moratorium for the monthly LPPSA housing instalment financing.

It stated that the government has prepared a housing financial facility that is LPPSA, which has already been subsidised at an interest rate of 4%.

“This is lower than financing rates offered by any local banking institution.

“In addition, LPPSA-provided housing financing with 4% interest rate is significantly lower than the cost of funds raised by LPPSA through sukuk issuance at a rate of between 4.5% and 5%,” it said in a statement yesterday.

It added that any moratorium or deferment to the monthly instalment payment will impact the facility’s cashflow and involve additional loans totalling over RM2 billion.

“The LPPSA is responsible for ensuring sustainability, and that its resources and finances remain intact in order to maintain the convenience of housing financing benefits for present and future civil servants,” it said.

Fundamentally, civil servants and government retirees still receive full salaries and pension to cover their monthly expenses, which include repayment obligations to the LPPSA for housing financing.

“The welfare of civil servants under the economic stimulus package (Prihatin Rakyat) has remained a priority for the government through the provision of cash assistance including a one-off RM500 to 1.5 million civil servants in grade 56 and below.

“The group includes contract crews and over 850,000 retirees, starting April 2020,” it added.

In addition, civil servants under the bottom 40% and middle 40% income groups will be provided aid from Bantuan Prihatin Nasional ranging between RM500 and RM1,600, which will be paid out between April and May 2020, while the balance of Bantuan Sara Hidup will be paid out in July.

“As such, LPPSA has decided not to go with any deferment or moratorium for the monthly repayment as it is confident that civil servants are fairly protected at this moment,” it said.