Finance Ministry has not provided or guaranteed financing to any airline

The Finance Ministry has clarified that it has not provided any financing nor guarantee to any airline.

KUALA LUMPUR: The Finance Ministry has clarified that it has not provided any financing nor guarantee to any airline.

It had on Tuesday issued the statement to refute media reports about it providing or guaranteeing such financing.

Nikkei Asia had earlier reported the government approved a RM1bil loan as a lifeline to AirAsia Group.

The wire reported the loan will be made by a group of local banks under a government scheme to help companies deal with the fallout from the Covid-19 pandemic.

The question of funding has been touchy as the government has stated that it would not bail out any airline.

Last Saturday, Reuters reported a group of leasing companies rejected a restructuring plan put forward by Malaysia Airlines, bringing the state carrier closer to a showdown over its future.

The lessors claiming to represent 70% of the airplanes and engines leased to the Malaysia Airlines have called the plan "inappropriate and fatally flawed" and pledged to challenge it, according to the Reuters report.

AirAsia X Bhd is also in dire need of massive debt forgiveness from its creditors, or be prepared to shut its business down for good.

The low-cost, medium-haul airline, which has grounded all its flights due to the Covid-19 outbreak, is asking creditors and suppliers to forgo over RM63bil in liability and instead accept a maximum RM200mil in payment.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Finance Ministry , financing , guarantee


Next In Business News

Ringgit slightly lower on downward oil trend
Kenanga maintains 'market perform' on Pavilion REIT
Quick take: Mr DIY falls after earnings miss expectations
Semicon and tech stocks top gainers
Quick take: MI Technovation shares at five months high
MR DIY sales to bounce higher in coming quarters
Trading ideas: MI Technovation, T7, Stella, Focus Dynamics, MR DIY
China aims to provide 2 bln COVID-19 vaccine doses, Malaysia among producers
Oil price rises over 1% as Mideast tensions face virus concerns
Federal Reserve announces new capital ratios for large banks following stress test

Stories You'll Enjoy