Japan to extend loan to help Malaysia's debt problem

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Japan to extend loan to help Malaysia's debt problem
Malaysia's Prime Minister Mahathir Mohamad exchanges smiles with Japan's Prime Minister Shinzo Abe at the end of their joint news conference at Abe's official residence in Tokyo, Tuesday, Nov. 6, 2018. (Issei Kato/Pool Photo via AP)

TOKYO (AP) — The leaders of Malaysia and Japan have agreed that Japan will issue yen-denominated bonds of up to 200 billion yen (.8 billion) to help the Southeast Asian country battle its fiscal deficit.

Japanese Prime Minister Shinzo Abe told a news conference Tuesday that Japan also will provide loans to help Malaysia in areas such as education, transportation and people exchanges.

Malaysian Prime Minister Mahathir Mohamad, who returned to leadership this year, has long advocated learning from Japan’s postwar economic growth.

Earlier Tuesday, Emperor Akihito presented Mahathir with one of Japan’s highest awards for his international and cultural achievement.