Article from The Star dated 11 June 2013
GEORGE TOWN: Some 3,412 people under the Bank Negara Debt Management Programme (DMP) have collectively settled RM130mil of their outstanding bank loans, reducing the number of people under the programme to 89,450 at present.
Bank Negara Credit Counselling and Debt Management Agency (AKPK) chief executive officer Koid Swee Lian said the number of young people under the DMP between the ages of 20 and 30 had also been reduced.
“In 2009, the percentage of young people under the DMP was 15.8%. Today, it has come down to 10%,” Koid said at a briefing following a talk on “Making Prudent Financial Management a Way of Life”.
Under the DMP, loan defaulters have a period of between six and 12 years to settle the amount owed to the banks under a special interest scheme.
This year, AKPK's objective was to reach out to one million people, said Koid. “So far, we have already covered 650,000 people in the country,” she added.
Koid said that poor financial planning was a key reason for loan defaults. “Some 23% of those under the DMP defaulted because of poor financial planning. Another 20% defaulted because of high medical bills,” she said.