Japan to provide new 700 mil. dlr support to Malaysia

Asian Economic News, April 5, 1999

TOKYO, March 31 Kyodo Japan will extend new financial support to Malaysia in the form of loan guarantees worth 700 million dollars, the Finance Ministry said Wednesday. The assistance will be provided under Tokyo's initiative to spend 30 billion dollars to help five crisis-hit Asian countries -- Malaysia, Indonesia, the Philippines, South Korea and Thailand, the ministry said.

The loan guarantees, to be given by the Export-Import Bank of Japan, will help strengthen Malaysia's distribution infrastructure, it said. On top of the bank's loan guarantees, the 30 billion dollar aid scheme, unveiled last October, features interest subsidies to help the five Asian countries procure funds to deal with their debts. Japan has committed 16.6 billion dollars under the plan since it was announced.