Felda needs govt guarantees for external funds, debts at RM8.05bil

Felda has a new chairman in Tan Sri Megat Zaharuddin Megat Mohd Nor, whose immediate task is to see to it that Felda

PETALING JAYA: The Federal Land Development Authority (Felda), the authority that is saddled with debts of RM8.05bil, is expected to see its cash balance drop to about RM100mil by year-end, hampering efforts for external funding, according to sources.

Although Felda is implicitly owned by the government, it is learnt that financial institutions are not prepared to extend loans or carry out long-term bond programmes unless there is a government guarantee because of its weak finances.