Tengku Zafrul explained that the federal government will only begin servicing the principal debt once some of the bonds issued by the sovereign fund and its subsidiaries mature by May this year and the debt servicing will continue to be paid until 2039

Finance Minister Tengku Zafrul Tengku Abdul Aziz confirmed that the principal debt of 1MDB has not been paid until now as it will only mature between 2022 and 2039.

Tengku Zafrul said that until the end of February 2022, 1MDB’s total debt was about RM38.8 billion, comprising RM32.3 billion in principal debt and RM6.5 billion in interest.

“We have started paying the interest on 1MDB’s debt of about RM6.5 billion and have not paid the principal because the principal of the debt will mature later,” the Malaysian National News Agency (Bernama) reported as he said in a question-and-answer session with the minister in Parliament on Thursday (03 March).

He said this in response to an additional question from Lim Guan Eng (Pakatan Harapan-Bagan) who wanted an explanation by Pekan Member of Parliament and former prime minister Najib Razak that the government had not paid 1MDB’s debt.

According to Tengku Zafrul, 1MDB’s principal debt includes 1MDB Energy Ltd’s bonds issued worth RM7.35 billion, 1MDB Energy (Langat) Ltd’s bonds issued worth RM7.35 billion, 1MDB Global Investments Ltd’s bonds issued worth RM12.6 billion and 1MDB Islamic Medium Term Note Sukuk worth RM5 billion.

Najib, on Wednesday (02 March) during his during his debate on the royal address in Parliament said 1MDB debts should not be used as an excuse that has damaged the country’s financial position.

“Do not give an excuse that 1MDB is damaging the country’s financial position when the truth is the governments have never paid a single cent of 1MDB’s principal debt.

“In 2018, 1MDB’s debt stood at RM32 billion, in 2019 it was at RM32 billion and in 2020 and 2021, it still stood at RM32 billion,” Najib pointed out.

The former Premier added that the administrations after BN should have used the money paid by Goldman Sachs Group Inc, US Department of Justice (DoJ), AmBank Group, accounting firm KPMG International Ltd and audit firm Deloitte to the government to pay 1MDB’s debts.

“Funds received from DoJ worth RM3 billion, AmBank RM2.83 billion, RM340 million from KPMG and RM324 million from Deloitte should be used to pay 1MDB’s debt. All of these totalled nearly RM23 billion,” he said stressing that it is not right to say the people have to pay for 1MDB’s debts. – New Malaysia Herald

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