KUALA LUMPUR – The government will pay RM1.57 billion this year in interest payments for 1Malaysia Development Berhad (1MDB) debt, the Finance Ministry said.
In a written parliamentary reply to Pang Hok Liong (Labis-PH), the ministry said the interest payment is done twice yearly according to a previously set schedule.
The amount of interest is at the estimated foreign exchange rate of USD1.00 to RM4.50, the ministry added.
To date, RM789 million had been allocated this year for interest payments on offshore loans including Samurai Bonds, Global Sukuk debts and other loans for overseas projects.
The ministry also said that as of the first quarter of 2022, the federal government’s offshore loans in foreign currencies value at RM29.2 billion or 1.8% of the nations’ gross domestic product (GDP).
“Of this amount, market loans which are Global Sukuk debts and Samurai Bonds recorded RM24.9 billion while the remaining RM4.3 billion are project loans.”
Last month, Finance Minister Tengku Zafrul Aziz said the remaining debt commitment to 1MDB was RM32.08 billion as of June 30.
He added that between April 2017 and May 2022, Putrajaya channelled financial assistance totalling RM10.85 billion in the form of loans or advances via the ministry and the Minister of Finance Incorporated (MoF Inc) to pay off 1MDB’s debt commitments and interest.
“Besides the government’s direct financial assistance, 1MDB’s debt interest is also being financed using its asset recovery funds kept in a trust account under the ministry, known as the Asset Recovery Trust Account,” he said. – The Vibes, August 2, 2022
