1MDB: RM600 million of 'standby credit' used up, says Husni

To date, 1Malaysia Development Berhad (1MDB) has used up RM600 million of the RM950 million 'standby credit' that was injected by the government.

Second Finance Minister, Datuk Seri Ahmad Husni Hanadzlah said, the strategic development company is expected to recover from the cash flow problems that it is currently facing, by the end of this year.

He said this after attending the Chinese New Year open house held by pomelo farmers in Tambun, Ipoh in Perak.

Last Thursday, Ahmad Husni had told the Dewan Rakyat that only RM60 million of the standby credit had been used by 1MDB to manage its cash flow.

He had also said 1MDB was in the midst of undertaking the initial public offering (IPO) to inject capital flow into the sovereign fund to overcome its cash flow problems.

The IPO, he had said, needed to be implemented as a short term measure to refinance the existing debt. It was reported that 1MDB had some RM13 billion debt in the energy sector alone.

Other recovery measures the company is currently taking include monetisation through the selling of its land assets as well as joint-venture initiatives.