Putrajaya guarantees Felda for RM9.9b sukuk, aims to ‘write-off’ settlers’ debts
Prime Minister Datuk Seri Anwar Ibrahim speaks at the ‘Temu Anwar’ (Meet Anwar) programme in Kedah yesterday. — Bernama pic
Sunday, 09 Jul 2023 1:31 PM MYT
KUALA LUMPUR, July 9 — The Finance Ministry today announced the approval of a government guarantee for the Federal Land Development Authority (Felda) issue up to RM9.9 billion sukuk.
The ministry also said the funds aim to cancel the settlers’ RM8.3 billion debts.
“Starting from the year 2023, the government has provided allocations of up to RM1 billion annually to enable the redemption of Felda sukuk that among other things, funds the write-off of settlers’ debts,” the ministry said in a brief statement.
Sukuk is the Islamic version of bonds.
The ministry said the move shows the Anwar government’s commitment to restore Felda’s financial position.
On July 7, Prime Minister Datuk Seri Anwar Ibrahim announced the government's approval of a yearly allocation of up to RM1 billion for 10 years to Felda to ensure its survival and to enable the delayed sukuk financing to continue.
National news agency Bernama has reported that Felda owes a principal sum of some RM7.9 billion to several financial institutions.
Sunday, 09 Jul 2023 1:31 PM MYT
KUALA LUMPUR, July 9 — The Finance Ministry today announced the approval of a government guarantee for the Federal Land Development Authority (Felda) issue up to RM9.9 billion sukuk.
The ministry also said the funds aim to cancel the settlers’ RM8.3 billion debts.
“Starting from the year 2023, the government has provided allocations of up to RM1 billion annually to enable the redemption of Felda sukuk that among other things, funds the write-off of settlers’ debts,” the ministry said in a brief statement.
Sukuk is the Islamic version of bonds.
The ministry said the move shows the Anwar government’s commitment to restore Felda’s financial position.
On July 7, Prime Minister Datuk Seri Anwar Ibrahim announced the government's approval of a yearly allocation of up to RM1 billion for 10 years to Felda to ensure its survival and to enable the delayed sukuk financing to continue.
National news agency Bernama has reported that Felda owes a principal sum of some RM7.9 billion to several financial institutions.
It would be a wonder if Malaysia's debt does not keep rising by leaps and bounds with moves like this.
ReplyDeleteAnd say what you want, this is basically a bail out although the small man benefits this time.