'Don't make us second victims': Nepal flood families demand central bank debt relief

Families of the 54 Malaysians still missing after Nepal's flash floods and landslides have welcomed Bank Negara Malaysia's (BNM) willingness to help with financial aid, but they desire a unified, coordinated approach. Dr Manivannan Rethinam, spokesperson for Malaysia Solidarity: Families in Hope (MASFIH), expressed that BNM's announcement that banks may consider repayment pauses, fee waivers, and streamlined insurance and takaful claims was a good start.

Given the unusual scale of this disaster, he believed the next step should involve a BNM-led, centralized framework instead of the 54 families having to negotiate with various banks, insurers, and financial institutions separately. Most importantly, the next of kin must not become victims themselves in this tragedy, he emphasized.

Manivannan said the families required a temporary halt to repayments or a debt deferral, without accruing interest, profit, or late payment charges, on debts registered in the names of the missing individuals. The request did not include the personal debts of next of kin or other family members. For vehicle financing, he advocated for a clear process, including voluntary surrender if continued payments became unfeasible, without the next of kin being treated as the borrower.

Any proceeds from a sale should be given to the person or their estate legally entitled to it, he added. He also called for a legal process to find, safeguard, and manage the missing persons' assets, including bank deposits, shares, unit trusts, Employees Provident Fund (EPF) savings, e-wallets, and insurance and takaful policies.

The families requested a meeting with BNM next week via BNMLINK and the Offices Department (JLPB) deputy director Hasjun Hashim. They also asked that the Attorney-General's Chambers (A-GC) participate to ensure the proposed measures fit within the proper legal framework, as there was no confirmed death or formal legal status. The families didn't seek to erase debts; they sought temporary relief, clarity, protection for their loved ones' assets, and a fair, compassionate process while their loved ones' legal status remained uncertain.

MASFIH reiterated its call for a meeting with Prime Minister Datuk Seri Anwar Ibrahim, a request they have made since the early days of the disaster. The families aren't seeking special treatment; they need clarity, coordination, protection, and ongoing government support as they await the return of their loved ones.