Monday, 9th May 2005 (2639 views)

Malaysia's gold reserves could be used to help finance the purchase of defence equipment.

British defence systems company, BAE Systems, has approached the Malaysian government with a proposal that would enable the country to purchase £1 billion of warships and other defence items.

Gold certificates would be used to enable Malaysia to secure a low-finance loan for the national purchase.

The annual interest rate on a borrowing secured with gold could be as little as 0.5 per cent, reports are speculating.

According to the Wall Street Journal, Malaysia's prime minister, Najib Razak, said the proposal was unsolicited, and no decision has yet been made.

 

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