Malaysia drains crowdsourced 'Hope Fund' to repay 1MDB debt: Finance Minister Lim Guan Eng
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The fund collected RM202.7 million in donations and RM2.8 million in interest as of January, Finance Minister Lim Guan Eng said.
PHOTO: SIN CHEW DAILY/ ASIA NEWS NETWORK
KUALA LUMPUR (BLOOMBERG) - Malaysia's Hope Fund has been exhausted as the government used all RM205 million (S$67 million) it raised from the public to pay off some of 1MDB's debt, Finance Minister Lim Guan Eng said.
The Finance Ministry set up Tabung Harapan, or the Hope Fund, following a shock election victory in May 2018 by a coalition led by Prime Minister Mahathir Mohamad.
The fund drew contributions from Malaysians as well as businesses eager to help after the government said the country's debt was higher than previously disclosed by the previous administration.
The fund collected RM202.7 million in donations and RM2.8 million in interest as of January, Mr Lim said in a statement on Saturday (Nov 30).
Debt at the troubled state fund 1Malaysia Development Berhad (1MDB) is currently about RM50.5 billion, he said.
About RM144 million from the fund went to paying the interest on 1MDB's Islamic Medium Term Note sukuk in May.
The government used the remaining RM61.7 million from the Hope Fund on Thursday to offset another interest payment on the same bond.
The remainder RM82.07 million for the November coupon was paid using funds from the recovery of 1MDB assets, which has amounted to about RM1.45 billion, Mr Lim said.
"The government is committed to pay all the loan obligations that were inherited by the previous administration," Mr Lim said, adding that it has or will cost RM13.9 billion to pay the debts of 1MDB and SRC International through 2020.
The next 1MDB payment will be in March for interest of RM66 million on another bond.
