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‘RM10b domestic debt (of Federal borrowing) increase in 3 months’

November 25, 2013
Lisa J. Ariffin and Alfian ZM Tahir  (FMT) | November 25, 2013

Ahmad told parliament that of the RM529.2 billion, RM512.3 billion or 96.8% is domestic debt while the remaining RM16.9 billion or 3.2% is external debt.

KUALA LUMPUR: The federal government’s domestic debt has increased by RM10 billion in the last three months.

Deputy Finance Minister Ahmad Maslan disclosed today that the government debt level as of September 2013 stood at RM529.2 billion.

Ahmad told parliament that of the RM529.2 billion, RM512.3 billion or 96.8% is domestic debt while the remaining RM16.9 billion or 3.2% is external debt.

Just last month the Finance Minstry revealed that the domestic debt stood at RM502.9 billion. This was a climb from its June 2013 figures which was RM519.3 billion.

In explaining the increase, the ministry said the government’s policy was to prioritise domestic loans which have high liquidity, lower borrowing costs and able to minimise foreign exchange risks.

Domestic loans are obtained through the issuance of treasury bills, government investment issues, the government security and loans to housing loan funds.

Holders of such instruments include financial institutions, insurance companies and social security institutions such as the Employees Provident Fund (EPF) and Social Security Organisation (Socso).

On the other hand, the national debt stood at RM284.7 billion or 28.2% of the gross domestic product (GDP).

The national debt is incurred by the state due to loans obtained by the government and private sectors from foreign sources and includes the external debt of the federal government, public non-government enterprises and the private sector.

Also read:

Federal govt debt at RM519.3b

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One Comment leave one →
  1. najib manaukau permalink
    November 25, 2013 7:57 am

    A loan is a loan regardless of the name you want to call it, call it any name it is still a loan, just don’t give yourself any excuses for being in debt ! You are in debt because you over spent and have to borrow, when you borrow you call it a loan. You loan because you are in deficit ! Stop giving yourself any excuses and at the rates you are borrowing you will go bankrupt when the black gold runs out. That is going to happen soon, very soon.May be it is because you know you know you will not be around long enough to worry about it, plus it will be a problem for the on coming in regime to worry about it !

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