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’s finances improve. It has been reported that Felda’s debt is expected to be reduced to RM6bil from RM8.05bil from the proceeds of the sale of assets by the end of this year – something that could help its case for more borrowings from banks.
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.
Before the May 9 general election, Felda was to issue bonds to the tune of RM6bil to help it carry out its programmes while an exercise to rationalise and divest its assets was completed.
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