Mahathir says should impose limits on govt guarantees

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KUALA LUMPUR (July 23): Malaysian Prime Minister Mahathir Mohamad says there should be a limit on how much the government guarantees loans.

“There should be a limit to the amount that the government can guarantee. In the case of loans taken by the government, it should not exceed 55%” of GDP, he says in Kuala Lumpur. 

“But for guarantee, there is no limit and as a result we see some guarantees amounting to very big sums like RM42 billion and all that.”