*Here is *

*https://www.msn.com/en-my/news/national/debt-to-gdp-ratio-to-cross-60-by-end-of-october/ar-AAPmTvE?ocid=msedgntp*

*KL : country’s statutory debt to GDP ratio more than 60% by end Oct**Zafrul said 2021 debt service coverage ratio RM39b, 2022 RM43.1 b**for every RM1 revenue we have to pay 18 sen interest*

**OSTB : Hello Malaysian Media and Tengku Zafrul – this IS NOT A RATIO. Do not hide information. **

**2/3 is a ratio. 3/4 is a ratio. 7/8 is a ratio. 5/16 is a ratio. 2:1 is a ratio. 4:1 is a ratio. **

**RM50 is NOT a ratio. RM30 million is NOT a ratio. RM39 billion is also NOT a ratio. **

*Debt service coverage ratio (DSCR) compares operating income available with debt servicing for interest, principal and lease payments. It is a benchmark used to measure the ability to produce enough cash to cover debt payments.*

**(OSTB : Hello Malaysian Media, so what is the DEBT SERVICE COVER RATIO? **

**If the DSCR is 1:1 that means the government has committed suicide. It means for every RM1.00 of Revenue there is RM1.00 of HUTANG to be paid. No more money left over for development.**

**The bigger the DSCR the more healthy the government’s finances. If the DSCR is 100:1 it means for every RM1.00 government revenue only 1 sen is needed to bayar HUTANG. **

**But Tengku Zafrul says **

*for every RM1 revenue we have to pay 18 sen interest*

**this means that calculating interest payment alone the DSCR (interest only) is 100:18. THIS IS CALLED A RATIO. Tapi ini bayar bunga saja. Interest only.**

**Then you must add back principal payments. How much are the total principal repayments per year?**

**Only then can you calculate the FULL DEBT SERVICE COVER RATIO. This is what Zafrul is NOT telling us.)**

*The federal government also sought to increase the statutory debt limit from 60% to 65% of GDP.*

**(OSTB : Haiyya walau-eh, exactly how much is that? The Malaysian GDP is around RM1.4 TRILLION !! Or RM1,400 BILLION. 10% of that is RM140 Billion. 5% of that is RM70 Billion. **

**So what it means is that they want to go from HUTANG 60% of GDP (RM840 billion) to HUTANG 65% of GDP (RM910 billion). **

**Ayyo mama. That is approaching almost RM1.0 Trillion !!**

**Can you imagine the amount of Government Bonds and Treasury Bills they will be issuing to borrow that extra RM70 billion? **

**And listen carefully folks, this extra RM70 billion will not even be enough for 12 months. Next year they will need to borrow money again.**

**Each time they issue Government Bonds it will affect the Ringgit exchange rates, it will impact money market rates. People with knowledge of this information can make a killing on the money markets and the FOREX markets. Deyy, we know what you did last summer !! )**

*Zafrul said plan to reduce deficit by 2025 to 3%-3.5%*

*replying Nga Kor Ming who said govt debt will hit RM1.3 trillion**Nga said each Malaysian indebted for RM40,000**Malaysia face lower credit rating if such debts continue**Nga raised concerns over leakage and wastage of funds**Some projects not even 50% complete but 94% allocation used*

*Zafrul said RM45b monitored by govt, Pakatan Harapan MoU*