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Economy of Putrajaya


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The federal government has thrown debt-laden Johor Corp (JCorp) a financial lifeline by guaranteeing a fundraising exercise that will help the state agency meet its immediate debt obligations. JCorp, the strategic investment arm of Johor, announced that it planned to issue a sukuk wakalah Islamic finance instrument worth RM3bn to be directed at redeeming the state-owned corporation's outstanding bonds worth RM3.2bn maturing at end-July. The guarantee, approved by the Cabinet, represents a major departure from the government of loans by state agencies. Typically, the federal government provides its backing of fresh loans taken by state agencies and shuns providing support for fundraising schemes directed at refinancing existing debt. (Financial
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