MORATORIUM FROM THE PERSPECTIVE OF MAQASID ALSHARIAH
The moratorium term began to be widely used and understood by the public when Bank Negara Malaysia (BNM) announced the issuance of a six-month moratorium for bank borrowers starting 1 April 2020 following the COVID-19 crisis. The issuance of the moratorium was implemented long ago by the banks in Malaysia, only it was not advertised in public and was more on a case-to-case basis. In general, the moratorium is the deferral of repayment of loan/financing instalments due to urgent factors that disallow the debtor to make usual payments. This paper discusses the repayment moratorium from the perspective of Maqasid al-Shariah and recommendations that can be improved for the interest (maslahah) of all parties.
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