Banks agree in principle to a loan moratorium for families of 54 Malaysians missing in Nepal

Loan repayments for the 54 Malaysians still missing after the Nepal floods could be put on hold, after banks agreed in principle to a moratorium while an assistance framework is worked out, The Star reported.

The understanding came after a meeting between Bank Negara Malaysia (BNM), banking associations, insurers and financial institutions and representatives of the families on Monday, 12 October.

What was agreed

Dr Manivannan Rethinam, spokesperson for the families' group Malaysia Solidarity: Families in Hope (MASFIH), said BNM had started a process for financial institutions to contact all affected families by 16 October. The proposed arrangements will be reviewed within two weeks.

"Most banks want to help. Some have indicated that they are willing to offer a moratorium without interest, penalties or additional commitments, although we have yet to receive written confirmation," he told a press conference after the meeting, according to The Star.

Speaking to Utusan Malaysia, he said the proposal for a moratorium without interest or penalties still had to be studied and should not be taken as a final decision by the whole banking industry. He said, however, that there would be no debt collection or phone calls demanding payment from the families while further decisions are made.

In a separate statement, BNM said the meeting agreed that every financial service provider would have dedicated contact persons to reach out to the families and help the next of kin with administrative processes. BNM said it was ready to extend appropriate relief and support to the families, in line with applicable laws and regulatory requirements.

What the families are asking for

MASFIH has proposed an initial six-month moratorium, which could be extended if the legal status of the missing remains unresolved. The group wants no interest accrual, no penalties and no extension of loan tenures during that period.

"This is not a case of families being unable to pay or having no money. Their loved ones' bank accounts have been frozen or suspended, and they cannot access them," Manivannan said, according to The Star.

MASFIH presented a 35-page proposal at the meeting. Its other requests include:

• senior-level contact persons at each financial institution to coordinate cases
• decisions given in writing
• a lawful channel, through BNM and the Attorney General's Chambers, for verified next of kin to access the missing person's financial information, including CCRIS credit records
• immediate help with living costs through the financial institutions' foundations and corporate social responsibility programmes

According to the New Straits Times, Manivannan said having dedicated contact persons would also help protect the families from scam calls seeking personal or financial information.

Background

Flash floods struck the Nepal-China border region on 26 August. On 29 August, Wisma Putra said 55 Malaysians remained uncontactable in Nepal. On 1 October, one of them, who had been travelling alone, reported to the Malaysian Embassy in Kathmandu and returned home the next day, The Vibes reported. That brought the number still missing to 54.

According to The Star, Nepal's National Emergency Operation Centre (NEOC) officially ended search and rescue operations on 5 October, with an estimated 1,455 deaths, while more than 5,200 people remain unaccounted for.

What happens next

Banks are expected to begin contacting families by 16 October, and the arrangements will be reviewed within two weeks. According to the NST, MASFIH is still waiting for a written framework from BNM, and the group continues to seek a meeting with Prime Minister Datuk Seri Anwar Ibrahim.

Sources

• The Star, Banks open to moratorium for 54 missing in Nepal, 13 October 2026
• Utusan Malaysia, Banjir Nepal: Keluarga 54 rakyat Malaysia mohon moratorium enam bulan, 12 October 2026
• New Straits Times, Banks ease loan repayment concerns for families of missing Malaysians, 12 October 2026
• The Star, Banks agree not to demand loan repayments from families of 54 Malaysians missing in Nepal, 12 October 2026
• The Star, Nepal floods: 72 safe in China, 55 Malaysians in Nepal still missing, 29 August 2026
• The Vibes, Nepal pledges full cooperation to trace 54 missing Malaysians, 2 October 2026