Public sector employees welfare are taken care of by government, says board. Photo: Bernama

KUALA LUMPUR: The Public Sector Home Financing Board (LPPSA) will not be providing any moratorium on monthly loan repayments as the public sector employees’ welfare are taken care of.

In a statement today, it said the decision was also made to ensure its financial sustainability.

It said the LPPSA’s housing loan facility are subsidised at an interest rate of 4.0 per cent — lower that the rates offered by local banking institutions.

“The deferment in monthly loan repayments will affect LPPSA’s cash flow and involves an additional loan totalling more than RM2 billion.

“The LPPSA has the responsibility to ensure its financial sustainability in order to provide housing financing facilities to public sector employees,” it said.

It noted that the civil servants and government retirees continue to receive full wages and pensions to cover monthly expenses and meet financial obligations such as housing loan repayments.

The Prihatin Economic Stimulus Package (Prihatin) had also prioritised the employees’ well-being, such as the one-off payment of RM500 to more than 1.5 million civil servants Grade 56 and below, contract staff as well as more than 850,000 government retirees which will be paid this month.

Additionally, those from the B40 and M40 group will also receive the Bantuan Prihatin Nasional, where they would receive between RM500 and RM1,600 in cash assistance to be paid in April and May, while the balance of the Cost of Living Aid will be paid in July.

The LPPSA is a statutory body responsible for managing public sector housing financing services, established by the Ministry of Finance. – Bernama