THE Finance Ministry today denied approving any loan to airlines affected by the Covid-19 pandemic.

“With reference to media reports circulating today, MoF would like to clarify that it has not approved any government financing or guarantee to any airline,” the ministry said in a statement.

Nikkei Asia reported today that AirAsia Group had secured an RM1 billion lifeline in the form of a loan from the government to tide it over the coronavirus crisis.

According to Nikkei Asia, the loan will be made by a group of local banks under a government scheme and will be 80% guaranteed by MoF.

It said the loan would be disbursed by local financial institutions under the RM50 billion Danajamin Prihatin Guarantee Scheme operated by state-owned financial guarantor Danajamin Nasional. – Bernama, October 13, 2020.