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Malaysia - Country assistance strategy (Inglês)

This Country Assistance Strategy (CAS) for Malaysia aims to mitigate the social consequences of the economic crisis in 1997 and prevent the erosion of social sector achievements in the short to medium-term, whilst also looking at instruments to restore growth and confidence, and enhance Malaysia's competitiveness. The Bank proposes a base case lending program of $1.0-1.5 billion over three years in investment loans in the social and related sectors. The underlying assumptions for base case lending are that progress in financial and corporate reforms will be steady, based on currently-established targets, with increased transparency and disclosure; and public expenditure on social services will be maintained in real terms. The risks to the Bank under this base case are considered manageable. Moreover, no fast-disturbing loans are envisaged under the base case. The decision to focus exclusively on investment loans will also affect potential risks to the Bank, should Malaysia's external vulnerability increase significantly.




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