KUALA LUMPUR, April 8 ― Prime Minister Datuk Seri Najib Razak dismissed today claims that 1 Malaysia Development Bhd (1MDB) was facing bankruptcy, saying the debt-laden state investment fund had repaid its RM2 billion loan to Maybank and RHB.

In a written reply to DAP Jelutong MP Jeff Ooi today, Najib said the loan was serviced two months ago in February.

“For your information, 1MDB had already repaid the RM2 billion loan to Maybank and RHB on February 13 in accordance with the terms of the contracts.

“As such there is no question of 1MDB facing bankruptcy,” said Najib, who is also finance minister.

It was previously reported that the RM2 billion was part of the RM5.5 billion debt taken through its subsidiary, Powertek Investment Holdings Sdn Bhd, last May to refinance a RM6.17 billion bridging loan taken in 2012 to partially finance the purchase of power assets.

The remaining RM3.5 billion was said to have been converted into a 10-year term loan due in August 2024.

Maybank had 58.99 per cent of the RM2 billion loan, while RHB had 32.41 per cent. The other lenders are Alliance Investment Bank Bhd (4.06 per cent), Malaysia Building Society Bhd (3.24 per cent) and Hwang DBS Investment Bhd (1.29 per cent).

The inability of 1MDB to meet its loan payments previously had fuelled speculation that the firm was struggling with cash flow issues and unable to service its debt.