KUALA LUMPUR (April 10): The Federal Land Development Authority's (Felda) debt repayment is seen to be at RM2.5 billion in 2019 if loans failed to be restructured, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.
"In 2018, Felda had to pay RM1.4 billion in debt payment and interest rates to financial institutions," said Mohamed Azmin, while tabling the Felda White paper that was released today.
He highlighted that Felda needs a new and sustainable financial system.
"Felda's current financial position needs to be restructured immediately through loans restructuring with financial institutions and asset rationalisation," he added.
Additionally, Mohamed Azmin said the government has agreed to give a Government Guarantee to enable Felda to restructure its loans with financial institutions to support Felda's business.
"Felda is now in the process of identifying assets not strategic potentially to be liquidated for generating cash flow at the best value," he added.
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