Smart Mahathir asks Japan for soft loans

Malaysia has asked Japan to consider providing soft loans to help it deal with the country’s financial problems, Prime Minister Tun Dr Mahathir Mohamad said.

He said the request was made during his courtesy call on prime minister Shinzo Abe earlier today, and his Japanese counterpart said Japan would study the request. No specific amount was discussed.

“I reminded him about the soft loan given by Japan when I was prime minister before, where the interest rate was 0.7 per cent, repayable over 40 years. At the time, Japan’s economy and financial strength were very good.

“This time we asked that they consider to give yen credit to Malaysia and he said they will consider,” Dr Mahathir told Malaysian media here.

He said the yen credit at a much lower interest rate could potentially be used to retire some of the existing high-cost borrowings, some with interest rate as high as 6 per cent.

“In some cases, we gave 10 per cent commission to those who arranged the credit. If we borrowed RM100 million, we only get RM90 million (after deducting the commission), but we still pay interest based on the RM100 million loan.

“That means the interest rate rises from 6 per cent to 7 or 7.5 per cent. That causes our borrowing cost to be too high. If we can reduce it by borrowing from other sources where the interest rate is lower we can retire the old loan,” Dr Mahathir said.

Meanwhile, commenting on an interview where he reportedly said the KL-Singapore High-Speed Rail (HSR) project was postponed and not scrapped, the prime minister said the government needs to restudy the project.

“If we are short of funds, we can delay the implementation of the project or reduce the scope of the project,” he added.
Wa, according to one joker in this forum, a loan is a booby trap and is an unequal treaty.

So Mahathir falls for booby trap wor.

Rolling on the flor laughing Rolling on the flor laughing Rolling on the flor laughing
We think Dr M has done the right thing ...
God will bless him ...

At the same time will strike Najib dead ...
Seriously we hope Ho Ching go for low interests loan too ...

Our teacher says this :

" Verily I say unto you, Whatsoever ye shall bind on earth shall be bound in heaven: and whatsoever ye shall loose on earth shall be loosed in heaven. "

Mahathir just does not like China Loan. He treated those are toxic loan.. China's soft loan is only 2% for 15 years with 5 years grace period..the only condition is - must use Chinese Contractor plus materials. He does not trust the Chinese so to speak..stupid or not.. you judge..

Quote:At present, China charges 2 percent interest on soft loans with a repayment period of 15 years, including five years of grace period. The loan also carries 0.2 percent commitment fees and 0.2 percent management fees.

In case of such loans, the Chinese government selects the contractor, and stipulates that all materials for the projects have to be purchased from China.
Not quite sure why in this article, Malaysia never let known the interest rate.. may be they have got a different term ..China agreed to give a US$ 13.5 billion loan
Sri Lanka also get soft loan from China at a rate of 2% in 2011 initially..
they kpkb when the rate went up to 6.3% or higher for subsequently loan which are commercial and not soft loan..
So he dun want to borrow from us any more after the bad experience with GCT. What he dun realise is Japanese money comes with more conditions and traps..... Laughing

Later China with start to shows who is smarter... Rolling on the flor laughing
12-6-2018 4:07 PM
SuperiorMover said:
Wa, according to one joker in this forum, a loan is a booby trap and is an unequal treaty.

So Mahathir falls for booby trap wor.

Rolling on the flor laughing Rolling on the flor laughing Rolling on the flor laughing

walaneh! shock
He forgot JepunChew times liao ah, bro! Worried
Mahathir is definitely not smart and never considered wise to defer the HSR to a later date.. He said price too high.. he is waiting for the price to drop.. is he waiting for the "seller" to reduce his prices? Thot they are going to call a tender and award to the lowest if it is possible.. therefore, either he cancel the HSR altogether if he cannot afford and review when time is ripe or go ahead by securing loans that is acceptable to him.. deferring is not the answer as processes have already kick-started (reserving land and engaging expert and studies )..the holding costs will escalate. cancelling at a later date may be costlier..
Century, Please apologise to my wife, my mother and my daughter
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