Malaysia's central bank to give 1MDB time to bring back S$2.5b in overseas funds

Malaysia's iconic Twin towers seen in the backdrop of the 1MDB logo on a billboard at the funds flagship Tun Razak Exchange under-development site in Kuala Lumpur.
Malaysia's iconic Twin towers seen in the backdrop of the 1MDB logo on a billboard at the funds flagship Tun Razak Exchange under-development site in Kuala Lumpur.PHOTO: AFP

KUALA LUMPUR - Malaysia's central bank said on Friday (May 13) that it will give embattled state investor 1Malaysia Development Berhad (1MDB) time to bring back the US$1.83 billion (S$2.5 billion) it has abroad.

1MDB was compounded for failing to bring back the money but Bank Negara Malaysia (BNM) governor Muhamad Ibrahim said the central bank decided against imposing a deadline after 1MDB said it needed the fund to restructure its debt, Malay Mail Online reported.

"Restructuring debt can take time," Datuk Muhamad was quoted as saying at an economic quarterly performance announcement here.

The deadline for 1MDB to pay the compound is May 30. The fund has said it will pay the fine.