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Penang has not submitted application for China loan

penang transport

Syndicated News
Written by Syndicated News

GEORGETOWN — August 15, 2017: The Finance Ministry has yet to receive any application from the Penang government for a loan from the Export-Import Bank of China to finance its transport master plan.

However the federal government has no issue with the application, so long as the entity applying is able to repay the loan.

“But we need to go through the right procedures, not only at the ministry level but also adhere to Bank Negara’s procedures and all other processes.

“This is to ensure that the borrower is able to sustain or repay from the proceeds of the business,” Second Finance Minister Datuk Seri Johari Abdul Ghanihe said here today.

He said the borrower also needs to justify the application for overseas funding when there is ample liquidity domestically.

It was reported in May that the Penang state assembly had passed a bill allowing the government to borrow from banks or financial institutions.

Chief Minister Lim Guan Eng had said the loan would be primarily used to fund investments and implementation of physical developments, economic and social programmes, including the transport plan and related projects. — Bernama 

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