Higher debt temporary and manageable, Bank Negara says

Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus said: "The increase is temporary and the bank and government do have the capacity. Our interest rates have come down, borrowings are now much cheaper so the impact on debt servicing ratio is also going to be much less."

KUALA LUMPUR: The plan to increase the country's statutory debt limit to 60 per cent of the Gross Domestic Product (GDP) from 55 per cent is temporary and can be managed by the government.

Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus said increasing the debt level during a crisis is not something new as Malaysia has done it before.