RM48bil of 1MDB debt paid off

Another RM5 billion must be repaid by 2039.

(FMT) – The government has paid RM48.06 billion in debts incurred by 1MDB, the Dewan Rakyat was told today.

Second finance minister Amir Hamzah Azizan said this included US$3 billion (RM14.2 billion) paid last March with funds from the 2023 budget.

“The remaining debt that needs to be paid is a RM5 billion sukuk which will mature in 2039,” he told the Dewan Rakyat.

Amir said that as per a settlement agreement signed in 2020, the government received US$2.5 billion (RM11.8 billion) from Goldman Sachs, with a guarantee for the return of assets amounting to US$1.4 billion (RM6.6 billion) by 2025.

As part of the 2020 settlement with Malaysia, Goldman Sachs made an initial US$2.5 billion payment in September of that year.

The bank was also required to make an interim payment of US$250 million if Malaysia did not receive at least US$500 million in assets and proceeds by August 2022.

In October last year, Goldman Sachs took the government to the London International Court of Arbitration following a disagreement over the terms of the US$500 million settlement. The proceedings are ongoing.

“The government, with the involvement of various agencies and 1MDB, is actively continuing efforts to recover 1MDB assets worldwide,” said Amir.

“The government is confident that these efforts will improve the 1MDB asset recovery rate more effectively.”