Skip to content
Tags

Guan Eng: Total 1MDB debt is RM50.75 billion, gov’t contributed RM8.93 billion towards repayment

November 5, 2019

The gov’t channelled RM8.93 billion towards paying off 1MDB debt over a two year period, and its total debt stands at just over RM50 billion. said Finance Minister Lim Guan Eng.

Lim said this in a parliamentary reply to a question by Kluang MP Wong Shu Qi, who asked last Wednesday how much of 1MDB debt has been repaid by the Government, and for details of the 1MDB debt repayment plan.

“For the period between April 2017 to May 2019 the Government provided financial assistance finance to 1MDB of approximately RM8.93 billion through the Ministry of Finance and the Minister of Finance (Incorporated) for the purpose of repayment of loan interest payments and a settlement fee to International Petroleum Investment Company (IPIC),” replied Lim.

Lim informed the Dewan Rakyat that the sum of 1MDB debt as at Oct 30, 2019 stood at RM50.75 billion, comprising principal payments and interest on syariah-compliant bonds (sukuk), and bonds amounting to RM31.65 billion and RM10.2 billion respectively. He also included the Government’s financial assistance of RM8.93 billion in this calculation.

“The annual commitment of 1MDB debt interest payments up to 2021 comes to about RM1.7 billion,” he added.

According to Lim (above), as of September 30, 2019, a total of RM925.1 million of 1MDB-related funds have been successfully recovered and deposited into the Assets Recovery Account under the Ministry of Finance. This sum includes RM6.1 million returned to the 1MDB Foundation.

“This fund has been acquired in various foreign currencies, including US dollars, dollars Singapore, Australian dollars and Chinese Renminbi,” he said.

The amount does not include the estimated revenue from the sale of the Equanimity yacht (below) of USD126 million (RM529.2 million) which was fully received on April 23, 2019, and is now kept in the Sheriff’s Stakeholder Account for the purpose of adjustment demands made towards the cost of the ship’s maintenance which will be determined by a Court Order.

Lim said that the balance of the sales revenue after deduction for these expenses are expected to be deposited into Assets Account Recovery in the fourth quarter of 2019.

“Overall, 1MDB-related funds that have been successfully recovered amounted to about RM1.45 billion,” said Lim

The Assets Recovery Account Fund will be used for payment of the 1MDB debt, he said.

“This is important to avoid defaulting as subsequent 1MDB debts would have a negative impact on the country’s economy because these debts are guaranteed by the Government of Malaysia through Government guarantees, letters of support and settlement agreements.”

The stark reality as presented by Lim is that the entire RM1.45 billion Assets Recovery Account fund is just enough to cover the interest on 1MDB debts from September 2019 to April 2020, which will amount to RM1.34 billion.

Therefore, he said, financial assistance from the Government would still continue to be needed.

LINK

From → Malaysia Upclose

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: