Without New Loans Govt Debt To Be Settled By 2053

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Finance minister Anwar Ibrahim said Putrajaya’s total debt exposure and liabilities by the end of 2022 stood at RM1.45 trillion, or 80.9% of Malaysia’s GDP.PETALING JAYA: It will take 30 years for the federal government to settle all its debts, provided Putrajaya does not make any new borrowings, said Prime Minister Anwar Ibrahim.
Anwar, who is also finance minister, said Putrajaya’s total debt exposure and liabilities by the end of 2022 stood at RM1.45 trillion, or 80.9% of Malaysia’s gross domestic product (GDP).
In a written parliamentary reply, Anwar said this comprised the federal government’s debt (RM1.08 trillion), loan guarantee commitments (RM205.9 billion), 1MDB (RM18.2 billion) and other liabilities (RM142.2 billion).
“With the assumption that no new borrowings are made for deficit financing and the repayment of mature loans from 2024 and beyond, the federal government’s debt is expected to be fully settled by 2053,” he said.
-ADVERTISEMENT-Ads by Of the RM1.08 trillion in government debt, RM1.05 trillion involved domestic debt while the remaining RM29.5 billion were offshore loans, Anwar said.
The prime minister added that the government remained committed to ensure debt service charges were paid on time.
“The debt service charges in 2018 amounted to RM30.5 billion, followed by RM32.9 billion in 2019, RM34.5 billion in 2020 and RM38.1 billion in 2021.
“For 2022, the government’s debt service charges stood at RM41.3 billion.”
Anwar was responding to Pang Hok Liong (PH-Labis), who asked the finance minister to reveal the amount of debt service charges paid from 2018 to 2022 and when Putrajaya’s debts would be settled. - FMT

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