KUALA LUMPUR: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) wants the government to offer a three-month deferment on housing loans taken by civil servants via the Public Sector Home Financing Board (LPPSA).
This was despite a statement by LPPSA earlier today that there would no deferment on the monthly housing loan payment.
Cuepacs president Adnan Mat said they were disappointed with LPPSA for not considering a need for a moratorium due to Covid-19 and Movement Control Order (MCO), which had also affected the civil servants nationwide.
“LPPSA said they decided not to offer moratorium as civil servants still continued to get their monthly pay cheques and pensions.
“This is not fair… LPPSA cannot assume all civil servants have working spouses.
“Some are housewives, self employed such as small traders and those working in the private sector,” he said in a statement, here, today.
He said Cuepacs is appealing for a three month deferment period between April and June and that it could be offered as an option for those who were in need.
“The Covid-19 pandemic has affected the daily routines and household incomes of many civil servants.
“We hope this could alleviate their financial strain so they will have additional money to use during this emergency period,” he said.
Adnan said for some civil servants, their take-home pay was only stood at 20 per cent, after deductions including for home loan and other loan repayments.
On Saturday, Adnan called for the government and LPPSA to allow similar measure to be taken for the benefit of civil servants a measure, in line with the six-month deferment of loan repayments adopted financial institutions to alleviate burden on borrowers following the Covid-19 outbreak and the subsequent MCO.
However, LPPSA today said it decided not to offer any moratorium as the welfare of civil servants was sufficiently taken care of.
It said any moratorium or delay in financing the monthly installment would affect LPPSA’s cash flow and result in additional loans of more than RM2 billion.
It said LPPSA was responsible in ensuring its financial viability and resources remained intact so it can continue to serve existing and future civil servants.
The government has subsidised the LPPSA at a 4 per cent interest rate, which is lower than the rate offered by any banking institution.
“The 4 per cent interest rate is significantly lower than the cost of the fund received by LPPSA through sukuk issuance of 4.5 per cent to 5 per cent,” it said.