RM5.1b set aside to pay 1MDB, SRC debt service for 2019, 2020

PUTRAJAYA: The government has set aside RM5.1 billion to pay off 1Malaysia Development Bhd’s (1MDB) and SRC International Sdn Bhd’s (SRC) debt service with RM2.4 billion for this year and RM2.7 billion for next year.

Finance Minister Lim Guan Eng said the government remained committed to paying off all loan obligations inherited from the previous administration and two more 1MDB payments had to make this year.

“Firstly, it is for 1MDB Energy Ltd (1MEL) bond interest payment of US$52.4 million (RM219.2 million) payable on Nov 11 and, secondly, the Islamic Medium Term Note (IMTN) sukuk interest payment of RM143.75 million payable on Nov 29,” said the minister in a statement today.

Lim said 1MDB’s debt and liabilities (including interest) currently stood at RM51 billion.

“This includes RM8.93 billion paid by the Finance Ministry and the ministry’s incorporated companies.

“On Oct 18, 1MDB had made interest payment worth US$50,312,500 to settle the 1MDB Energy (Langat) Ltd (1MELL) bond interest payment.

”The US$1.75 billion bond has been issued on Oct 19 and will expire on Oct 18, 2022.

“The payment was made using a 1MDB asset recovery fund that has been successfully repatriated for about RM1.45 billion so far,” he said.

Lim said Prime Minister Tun Dr Mahathir Mohamad was right when he said it was a miracle that Malaysia did not go bankrupt due to the damage done by the former regime, taking the country’s treasury for their own use.

“As Dr Mahathir said, the damage was not only financial, but also institutional. Dr Mahathir said one of the biggest challenges after overthrowing the kleptocratic regime was to clean up the damage left behind and rebuild the country which would take a lot of effort, time and money.

“As a result of these incidents, RM5.1 billion will be used to pay off 1MDB and SRC debts for these two years only in 2019 and 2020, whereas the “robbed” money should be used for the people,” he said.

Despite the debt, the minister said the Federal Government was still able to fulfil its mandate to spur development and look after the people’s welfare.