1MDB does not have any overdue debts: Malaysia's Finance Ministry

A sign for 1Malaysia Development Bhd. (1MDB) is displayed at the site of the Tun Razak Exchange (TRX) project in Kuala Lumpur, Malaysia.
A sign for 1Malaysia Development Bhd. (1MDB) is displayed at the site of the Tun Razak Exchange (TRX) project in Kuala Lumpur, Malaysia.PHOTO: BLOOMBERG

KUALA LUMPUR (THE STAR/ASIA NEWS NETWORK) - Malaysian sovereign wealth fund 1Malaysia Development Berhad (1MDB) does not have any overdue debts currently, said the country's Finance Ministry.

"1MDB has never failed in settling all its debts including payment of loan interest," the ministry said in a written reply to MP Mohamed Hanipa Maidin (Parti Islam SeMalaysia-Sepang) who wanted to know 1MDB's overdue debts and lenders.

On the amount of 1MDB debt guaranteed by the Government, the ministry said it amounted to RM5.8 billion (S$2 billion).

On March 25, 1MDB said its subsidiary Edra Energy (Langat) Sdn Bhd, had fully repaid a RM700 million Syndicated Term Loan Facility to a consortium of domestic banks.

Last week, 1MDB president Arul Kanda Kandasamy said the company will not have any more short-term debt and bank loans within the next three weeks after it repays RM6 billion in coming weeks with sales of its asset.

Mr Arul Kanda said 1MDB would have a cash surplus of at least RM2.3 billion after settling the debt.