Samurai Bond Won T Be Used To Settle Debts Says Kadir

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The prime minister’s media adviser, Kadir Jasin, says Putrajaya may borrow domestically or from abroad at a lower interest rate to repay the debts incurred by the previous BN administration.PETALING JAYA: The RM7.4 billion Samurai bond, which the Japanese government has offered to guarantee, is not intended to settle the country’s current debts, Kadir Jasin said
The prime minister’s media adviser explained it will be used instead to fund the education and transportation sectors, and to sponsor study visits between Japan and Malaysia
In a column in Sinar Harian, Kadir said Putrajaya may borrow domestically or from abroad at a lower interest rate to repay the debts incurred by the Barisan Nasional administration
“In view of the debts and liabilities of more than RM1 trillion that the current government has to bear, restructuring of loans will be one of the challenges in the coming years,” the veteran newsman wrote
Recently, the Japanese government offered to guarantee up to 200 billion yen (RM7.4 billion) of the Samurai bond with a 10-year tenure
The yen-denominated bonds will be guaranteed by the Japan Bank of International Cooperation at an indicative coupon rate of 0.65% and are expected to be issued before March next year
Prime Minister Dr Mahathir Mohamad also assured that the bonds were not being given in exchange for Japanese companies having projects in the country
Meanwhile, the country’s special envoy to China, Tan Kok Wai, said the issuance of the Samurai bond, along with the recent suspension of several China-linked mega projects will not affect the country’s ties with Beijing
Japan is often seen as a rival to China
“Based on my observations, the enquiries we have received from Chinese companies which want to invest here over the past few months have been tremendous,” The Star reported him as saying
Tan, who is also DAP chairman, said these companies were from various sectors, including e-commerce and agriculture

“They want to know more about the Malaysian market. We have been busy providing assistance to them,” he was quoted as saying by the English daily. - FMT

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