KUALA LUMPUR: The government is expected to issue RM14.2 billion worth of gross direct debt, and will redeem RM21.6 billion of it over the final two months of this year.
Ministry of Finance, Lim Guan Eng in a statement said, the net direct debt issuance for the period will be -RM7.4 billion.
He pointed out the government’s financing activities were proceeding as planned, as demonstrated by the actual issuance and redemption of its direct debt.
The latest full-year plan estimates that the government will raise RM135 billion worth of gross direct debt, and redeem RM83 billion, and as a result, the net direct debt to be raised for the whole of 2019 is estimated to be RM52 billion.
Quoting Lim, Bernama said, as the government has no intention to change its direct debt issuance and redemption plan for the rest of the year, hence, the government is confident of meeting its 2019 fiscal deficit target of RM52 billion or 3.4 per cent of gross domestic product (GDP).
This confidence is shared by all the top three credit rating agencies, which have affirmed Malaysia’s sovereign credit rating high at A- or A3 with a stable outlook since the new Pakatan Harapan government took over in 2018.