KUALA LUMPUR, July 1 — The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) has recommended the Public Sector Home Financing Board (LPPSA) to also defer repayment of housing loans by civil servants for six months, as being done by financial institutions under Bank Negara.

Its president, Adnan Mat said this was necessary as the grounds given by LPPSA that civil servants and government retirees are receiving full salaries and pensions, hence able to cover their monthly expenses, was no longer relevant.

The reason being that not all the spouses of civil servants are also government employees, he said, adding that more than 50 per cent work of them are working in the private sector, run small businesses and are full-time housewives.

However, with the implementation of the movement control to curb the spread of Covid-19 outbreak since last year, he said, some of them had lost their jobs, loss of income and those with business forced to cease operation.

 "Apart from that, most civil servants applied for the LPPSA loans by submitting joint income with their spouses. Otherwise, their (civil servants) financing applications will not get the approval easily, what more with the high price of houses now.

"If LPPSA allows its borrowers to defer their loan repayments, they will have excess money that can be used to re-plan their finances,” he said in a statement here today.

When announcing the National People’s Well-Being and Economic Recovery Package (Pemulih), worth RM150 billion, last week, Prime Minister Tan Sri Muhyiddin Yassin said a six -month moratorium would be given to all borrowers, covering those in the B40, M40 or T20 groups and micro entrepreneurs to help them deal when the challenges of the Covid-19 pandemic. — Bernama