Najib: Govt has guaranteed loans worth RM217 billion

KUALA LUMPUR: The federal government has guaranteed loans worth RM217.37 billion, up to June 2017, to four statutory bodies and 26 firms under the Minister of Finance Inc, Prime Minister Najib Razak said.

“The government guarantees were granted for the implementation of high-impact national strategic projects and to provide benefits to the people at large,” he said in a written parliamentary reply.

The Malaysian Reserve (TMR) quoted Najib as saying that the government guarantees were made to a range of sectors that included education, services, infrastructure, finance, investment holdings and utilities.

Najib said this in reply to Dr Lee Boon Chye (PKR-Gopeng) who had asked about the government’s current contingency liability.

In a separate reply to Fauzi Abdul Rahman ( PKR-Indera Mahkota), Najib said the federal government’s total debt stood at RM685.1 billion as at end of June 2017.

The total debt represents 50.9% of the country’s gross domestic product (GDP), well below the self-imposed debt ceiling of 55% to GDP, TMR reported.

Najib said of the total, 96.7%, or RM662.4 billion, was made up of domestic debt (42.9% of GDP), while the remaining 3.3%, or RM22.7 billion, were foreign borrowings (1.7% of GDP).

“The federal government’s debt position remains manageable and is categorised as a moderate debt level,” Najib, who is also finance minister, said.

Najib said this year’s gross debts amounted to RM108 billion, from which principal repayment was RM67.2 billion and loan-to-finance deficit was RM39.9 billion.

“The government will always ensure that the repayments of principal and interest will be done as scheduled and on time. The government, to date, has never failed in paying on time,” Najib said. -FMT