KUALA LUMPUR, Malaysia (July 2): The government has received the first payment of RM1.8 billion from AMMB Holdings Bhd (AmBank), which is part of the RM2.83 settlement relating to 1Malaysia Development Bhd, according to the Ministry of Finance (MoF) (1MDB). The amount has been paid into Malaysia’s Assets Recovery Trust Account, according to the ministry, and the remaining amount would be settled by AmBank in December this year and July 2022, totaling RM515 million.
The Malaysian Accountant-Department General’s has received a total of RM18.176 billion in cash confiscated, returned, or for settlements in connection with the controversial fund, with the funds being used or set to be used to satisfy 1MDB and SRC International Sdn Bhd’s outstanding debts.
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The government has paid out RM12.54 billion in 1MDB debt and RM3.8 billion in SRC debt so far. The outstanding debt for bonds, sukuk, and term loans, including principle and coupons/profit/interest, was RM39.66 billion (1MDB) and RM1.85 billion, respectively, as of June 30, 2021. (SRC).
“However, the trust account’s current balance is only sufficient to pay out the principle and interest of 1MDB’s debt for the years 2021 and 2022,” said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
The government would continue to carry the obligation to pay the balance of 1MDB’s obligations, which were backed by government guarantees and a letter of support, once the trust account funds are depleted, according to the MoF.
The ministry would also secure appropriate funding to settle 1MDB and SRC debts and manage the national financial burden caused by these firms, according to the statement./n
