PARLIAMENT | The government’s offshore borrowing stood at RM29.2 billion as of the end of June, the Dewan Rakyat was told today.

In a written reply, the Finance Ministry said the debt only constituted 1.9 percent of the total federal government debt, and included US dollar-denominated debt (RM15.9 billion), yen (RM13.1 billion), Islamic dinar (RM216 million), euro (RM1.6 million) and Canadian dollar (RM2.5 million).

It said the federal government’s offshore borrowing was below the ceiling of RM35 billion set under the External Loans Act 1963.

The ministry said this when replying to a question from Abdul Rahman Mohamad (BN-Lipis) on the total outstanding bonds and loans received by the government from foreign countries or parties.

The Finance Ministry said as of June, the federal government's debt amounted to RM799.1 billion or 52.7 percent of the gross domestic product (GDP).

It said the total debt was still below the 55 percent GDP level.

The ministry said every bond or sukuk issuance denominated in foreign currencies must be examined carefully taking into account the statutory limit of offshore borrowing, debt maturity profile, and foreign risk exposure to the country rating.

“This is to ensure the government is able to broaden investor base, get value for money on coupon rates and subsequently achieve the main objective of reducing the government financing cost,” it added.

-- Bernama