Govt will service 1MDB’s debt obligation, says Guan Eng

The government will honour all debt obligations related to 1MDB, says Finance Minister Lim Guan Eng. — Picture by Miera Zulyana
The government will honour all debt obligations related to 1MDB, says Finance Minister Lim Guan Eng. — Picture by Miera Zulyana

PUTRAJAYA, April 23 ― Finance Minister Lim Guan Eng has given his assurance that the government will service all debt obligations related to 1Malaysia Development Bhd (1MDB).

“The government needs to find the money to repay all the loans related to 1MDB, while the government gets nothing in return in terms of value,” he said.

Responding to a news report saying the government is proposing that RM2.4 billion worth of 1MDB bonds held by the Retirement Fund Incorp (KWAP) and Tabung Haji (TH) be converted into equity stakes in the Bandar Malaysia project, Lim said their loans are 100 per cent secure.

“There is nothing to worry, the ones who should worry are the Ministry of Finance and the government because we guarantee their loans, so we assure they are getting their money,” Lim said after witnessing the Collaboration Programme Agreement signing ceremony between his ministry and Bombardier Hartasuma Consortium here today.

According to the news report, the RM2.4 billion Islamic sukuk held by KWAP and TH when they were issued in 2014 to raise funds for Bandar Malaysia, will be redeemed for RM3 billion under the proposed terms. ― Bernama

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