MoF readies for 2nd Samurai bond issuance

Publish date: Sun, 08 Sep 2019, 09:32 PM
PUTRAJAYA: The Finance Ministry (MoF) is ready to act if the second Samurai bond issuance is continued.
 
In a statement today, the ministry said it was awaiting for further instructions from Prime Minister Tun Dr Mahathir Mohamad in relation to his statement on its issuance.
 
It also said the PM was taking into consideration the views of various parties although the interest rate of the second Samurai bond was lower.
 
During his recent visit to Japan, Dr Mahathir told a media conference that Malaysia had received the agreement of Japanese Prime Minister Shinzo Abe for the issuance of the bond and it was up to Finance Minister Lim Guan Eng to continue negotiations.
 
The MoF had in June received instructions from Dr Mahathir to initiate negotiations with the concerned parties after his visit to Japan in May, where he was offered the second of the Samurai bond series.
 
The Cabinet had also stated its agreement in principle, with further details to be scrutinised by the MoF, the statement said.
 
After discussions by the Finance Minister with those representing the Japanese government, particularly the Japan Bank for International Cooperation (JBIC) which will guarantee the issuance of the Samurai bond, it agreed to reduce the interest rate to 0.5 per cent with a maturity period of 10 years.
 
The interest rate for the first Samurai bond of 200 billion yen was 0.63 per cent with also a maturity period of 10 years.
 
 
 - Bernama
 

 

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ks55

When Japanese Yen is weak, Govt of Malaysia wanted to borrow in Yen denomination.
If using new Yen borrowing to pay for USD debt, you need to borrow more to retire lesser amount of debt.
If you need to bring home Yen borrowing to help development project in Malaysia, you are getting less in terms of Ringgit.
When Japanese Yen appreciates, you will need to pay more in terms of Ringgit.

Why can't you borrow more USD now as the currency is grossly overvalued right now, and when the future of US economy heading for crash, and FED is on the way to loosen interest rate thus killing USD exchange rate, all indicators pointing towards a lower dollar regime for next few years to come.

Only when we have some idiots wish to borrow when the currency is weak, and pay back when that currency goes sky high in near future.

How Malaysia not going bankrupt if Finance Minister don't even know a shit on economy?

2019-09-16 12:26

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