KUALA LUMPUR, Nov 20 (Bernama) -- The Federal government’s offshore borrowing stood at RM29.2 billion as of the end of June this year, the Dewan Rakyat was told today.
In a written reply at the Dewan Rakyat today, the Finance Ministry said the debt only constituted 1.9 per cent of the total federal government debt, and included US dollar-denominated debt (RM15.9 billion), yen (RM13.1 billion), Islamic dinar (RM216 million), euro (RM1.6 million) and Canadian dollar (RM2.5 million).
It said the federal government’s offshore borrowing is also below the ceiling of RM35 billion set under the External Loans Act 1963.
The ministry said this when replying to a question from Lipis MP Datuk Seri Abdul Rahman Mohamad on the total outstanding bonds and loans received by the government from foreign countries or parties.
The Finance Ministry said as of end-June this year, the Federal government debt amounted to RM799.1 billion or 52.7 per cent of gross domestic product (GDP).
It said the total debt is still below the 55 per cent level of GDP.
The ministry said under prudent debt management, every bond or sukuk issuance denominated in foreign currencies must be examined more carefully taking into account the statutory limit of offshore borrowing, debt maturity profile, and foreign risk exposure to the country rating.
“This is to ensure the government is able to broaden the investor base, get value for money on coupon rates and subsequently achieve the main objective of reducing the government financing cost,” it added.
— Bernama
