Govt to fulfil 1MDB commitments, just paid RM208mil in interest

KUALA LUMPUR: The government has settled the RM208.8mil (US$50.3mil) interest payment for 1MDB Energy (Langat) Ltd, says Finance Minister Lim Guan Eng.

The government has two more interest payments to make in this regard by the end of this year – RM217.51mil (US$52.4mil) on Nov 11 and RM143.75mil Sukuk Islamic Medium Term Notes.

“This year alone, Malaysia has so far paid RM1.688bil in interest payments on 1MDB loans.

“This is what the government and the rakyat have to bear,” he told reporters at the Parliament lobby on Thursday (Oct 18).

Lim, however, said that despite the hefty 1MDB debt, Malaysia would not default on interest payments.

“We will fulfil the commitment that we made at the international level, and Malaysia will not default on interest payments.

“If Malaysia went into default, it would not only affect our international reputation but also our status with ratings agencies,” he said.

Lim said the scandal-ridden state-owned investment fund had hurt the country's image and finances.

“We are known as the world champion of kleptocracy. It has hurt us financially and also our image,” he added.