Storify Feed Feedburner Facebook Twitter Flickr Youtube

ROS Lboard

PTPTN sells sukuk worth RM2.5b

 | June 13, 2012

The 10-year fixed-income bond offers a yield of 3.83%.

KUALA LUMPUR: The National Higher Education Loan Corporation (PTPTN) has sold government-approved Islamic bonds worth RM2.5 billion, according to Bloomberg.

The 10-year fixed-income security was privately placed and offered a yield of 3.83%, the newswire reported.

But concerns remain high over the bond’s performance as PTPTN grapples with loan repayment problems. The return rate has been less than 10% of loans disbursed since its inception in 1997.

A projection done by the opposition showed the corporation could be RM177 billion in debt by 2020, with the bulk coming from financing private education loans.

PKR strategic director Rafizi Ramli said the projected figure was based only on the current approval rate, and could actually be higher.

PKR and its Pakatan Rakyat partners apparently see the higher education loan debate as one of the major factors that could bolster their chances of victory in the coming election.

They expect the anger among lowly employed youths saddled with PTPTN debts to translate into voting support.

But Barisan Nasional leaders claim that the federal opposition’s “populist” plans would bankrupt the country.

Prime Minister Najib Tun Razak has accused Pakatan of making promises it would not fulfil, describing the proposals as “impractical and far-fetched”.

PKR has said the cost of bearing the free education programme and abolishing PTPTN could easily be offset by plugging leakages and improving the management of the country’s resources.


Comments

Readers are required to have a valid Facebook account to comment on this story. We welcome your opinions to allow a healthy debate. We want our readers to be responsible while commenting and to consider how their views could be received by others. Please be polite and do not use swear words or crude or sexual language or defamatory words. FMT also holds the right to remove comments that violate the letter or spirit of the general commenting rules.

The views expressed in the contents are those of our users and do not necessarily reflect the views of FMT.

Comments