Central Bank of Malaysia Act 2009 · Updated to 1 Nov 2020 · Part X · Relations with Government
71. Temporary financing to Government
Feedback & supportThe Board may extend temporary financing to the
Government on terms prevailing in the market in respect of temporary deficiencies of budget revenue.
All financing extended under subsection (1) shall be repaid as soon as possible and shall in any event be payable not more than three months after the end of the financial year of the Government in which it is extended; and if after that date any such financing remains outstanding, the power of the Bank to extend further financing in any subsequent financial year shall not be exercisable unless and until the outstanding financing has been repaid.
financing
“financing” means the giving of any advance, loan, credit or other facility in whatever form or by whatever name called, including the giving of a guarantee or undertaking of any surety obligations for another person and where such financing is extended in accordance with the Shariah shall include, and may be in the form of, without limitation, any sale or purchase arrangement, joint venture arrangement, deferred payment sale, return sharing arrangement or any other financing arrangement made in accordance with the Shariah;
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Bank
“Bank” means Bank Negara Malaysia or in English, the “Central Bank of Malaysia”;
The aggregate amount of financing extended by the Bank under subsection (1) and securities issued by the Government, purchased by the Bank excluding any such securities acquired in the course of, or held solely for, monetary policy operations, shall not at any time exceed twelve and a half per centum of the estimated receipts of the
monetary policy operations
“monetary policy operations” means any transaction undertaken by the Bank to manage liquidity in the financial system.
Federation shown in the statement laid before the House of
Representatives pursuant to Article 99 of the Federal Constitution for the financial year of the Government in which the financing is extended.