Putrajaya nod for rescheduling loan repayments by states

KUALA LUMPUR: The federal government says it is prepared to consider applications from state governments for loan restructuring or rescheduling to help ease their difficulties in making repayments.

In a statement today, the Finance Ministry (MoF) said the matter was brought up at the National Finance Council meeting today.

The council also agreed to approve RM350 mil in contributions to the State Reserve Fund for 2022 to fund the Economic, Infrastructure and Welfare Development-Based Grants (TAHAP).

“The council has also agreed to channel the TAHAP contributions directly to all state governments at the start of each year starting 2021. The initiative shows the federal government’s commitment and concern to assist low-income states in implementing projects that will benefit the people,” the ministry said.

It had also agreed to improve the Malaysia Road Record Information System (MARRIS) by increasing its budget and raising the current allocation limit to 20$ or RM50 mil, whichever is lower, to cover maintenance works for federal roads/culverts, utility preparation or rerouting as well as the care of roadside trees.

The ministry said following the impact of Covid-19, the government had decided that the MARRIS allocations for 2021 be given fully even if the state governments had not reached 85% of spending for 2020. – May 22, 2020, Bernama

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