Putrajaya says forking out RM5.1b to settle 1MDB, SRC interests for 2019, 2020

R. Loheswar
Finance Minister Lim Guan Eng at a press conference in Kelana Jaya January 31, 2019. — Picture by Shafwan Zaidon

KUALA LUMPUR, Oct 22 — The federal government has set aside RM5.1 billion to settle 1MDB’s debt obligations for 2019 and 2020.

According to finance minister Lim Guan Eng, RM2.7 billion is for 2020 while RM2.4 billion is for 2019. Thus far they have only two more payments to make in 2019 which is the interest on bonds generated through 1MDB Energy Ltd amounting to RM219.4 million to be paid on November 2019 and RM1143.75 million in sukuk issuance for Islamic Medium term Note on November 29.

The ministry also said that on October 18, 2019 a payment of US$50,321,500 (RM210,675,991) was made to settle the interest on bonds issued by 1MDB Energy (Langat) Ltd. The bonds are worth US$1.75 billion (RM7.33 billion) issued in 2012 and maturing in 2022.

These interests were paid from money the government have managed to recover from 1MDB’s assets, which is around RM1.45 billion thus far.

“Like our prime minister Tun Dr Mahathir Mohamad said it’s a wonder the country hasn’t gone bankrupt from the kleptocratic rule of the previous regime who used government funds like their private funds.

“Like he said, the damage was worse than we thought when we assumed office. Despite this heavy burden the federal government is still able to continue its development and look after the welfare of the people,” Lim said in a statement.

Malaysia’s debts and liabilities including interests at this time is RM51 billion including RM8.93 billion that’s already been paid by the Ministry of Finance Incorporated.

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