KUALA LUMPUR – The government will have to shell out RM3.272 billion in 2021 to service loans incurred by 1Malaysia Development Bhd and its former subsidiary, SRC International Sdn Bhd.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said this in a written reply yesterday to Datuk Mahfuz Omar (PH-Pokok Sena).
Tengku Zafrul said the government is expected to pay RM1.705 billion next year to service the sovereign wealth fund’s arrears, involving interests or coupon payments for three bonds and one sukuk issued by 1MDB and its subsidiaries.
Putrajaya will have to pay another RM1.567 billion for SRC International’s debt.
Tengku Zafrul said 1MDB’s total debt stood at RM40.87 billion as of October 31.
Taking into account all financial commitments, he said, the government’s overall debt exposure and liabilities are estimated at RM1.257 trillion, or 87.32% of gross domestic product, by end-September.
He said 1MDB and SRC International are in critical condition following scandals and the misappropriation of funds.
“Both companies have ceased operations and are unable to service funds guaranteed by the federal government.”
The Finance Ministry’s calculations are based on the exchange rate of US$1 to RM4.20.
Tengku Zafrul said SRC International owes RM4 billion to pension fund Retirement Fund Inc (KWAP).
“KWAP has agreed to restructure the loan facilities given to SRC International, totalling RM4 billion, effective from 2020 to March 28, 2022.”
After the restructuring, SRC International owes KWAP RM3.67 billion, which includes principal and interest payments.
Nga Kor Ming (PH-Teluk Intan), meanwhile, asked Tengku Zafrul about government debts, including those incurred by government-linked companies, last month.
The minister, in a written reply, said GLCs will have to bear their own debts, while Putrajaya will bear 1MDB’s.
He said the government will continue efforts to recover the state investor’s assets, and as of September 30, the 1MDB Recovery Trust Fund had a balance of RM11.7 billion.
The recovery fund will be used to settle the entity’s financial commitments, he said. – The Vibes, November 26, 2020
