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Yen credit more feasible than US$ to settle 1MDB debts


With the cost likely to be lower and the tenure longer, a yen loan was a feasible and an attractive proposition to pare down the more expensive dollar borrowings, especially the ones incurred by 1Malaysia Development Bhd, said Sunway University Business School professor of economics Yeah Kim Leng(filepic).

With the cost likely to be lower and the tenure longer, a yen loan was a feasible and an attractive proposition to pare down the more expensive dollar borrowings, especially the ones incurred by 1Malaysia Development Bhd, said Sunway University Business School professor of economics Yeah Kim Leng(filepic).

PETALING JAYA: Malaysia’s request for yen-denominated loans from Japan to help resolve its debt problems was a more feasible and attractive proposition given that the cost was likely to be lower and the tenure longer, say economists.

The move resembles the scenario during the 1997 Asian Financial Crisis when the country sought the assistance from the Japanese to help resolve its financial difficulties while going on an austerity drive.

   

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