PM presents document related to government guarantee to Felda

Prime Minister Datuk Seri Anwar Ibrahim today presented the Assignment for Financial Service Reserve Account (FSRA) agreement document related to the Government Guarantee to the Federal Land Development Authority (Felda) which he had signed.

He presented the document today following his statement yesterday to former prime minister Tan Sri Muhyiddin Yassin that he will present evidence today that he had signed a document for the cancellation of Felda settlers' debt.

"I present part of the Assignment for Financial Service Reserve Account (FSRA) agreement document related to the government guarantee to Felda which I have signed," the Prime Minister said in a two-paragraph statement today.

In a separate statement, the Ministry of Finance today confirmed that the Assignment for Financial Service Reserve Account (FRSA) agreement was signed by the Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim on June 26, 2023.

According to the ministry, this agreement involves a government guarantee of RM9.9 billion to Felda to restructure the agency's loans through the issuance of sukuk and revolving credit in an effort to restore Felda's financial position.

"Under the agreement, the government will finance the repayment of the sukuk through a grant allocation of RM990 million every year for a period of 10 years," it said in a media statement.

The ministry also confirmed that the first disbursement of RM990 million was made on July 18, 2023 in line with the allocations provided in Belanjawan Madani 2023.

It said the government's guarantee agreement and the distribution of allocations to Felda are important elements implemented by the Unity Government to ensure the survival of Felda, among others, taking into account the impact on Felda's cash flow and financial position following the elimination of the Felda settlers' debt.

-- BERNAMA