1MDB to prove ability to reduce debt levels

1Malaysia Development Bhd (1MDB) is expected to take additional steps to reduce its overall debt levels after repaying a US$975 million loan.

The strategic development company will make further announcements in the coming weeks that will see even more of the company's debt paid off.

Hence, the company and the Finance Ministry should be given time and opportunity to continue along this path so that they could make further progress.

Yesterday, 1MDB fully repaid a US$975 million loan to a syndicate of international banks in line with the rationalisation plan approved by the Cabinet.

The ultimate aim of this plan is to reduce 1MDB's overall debt levels which stood at RM42 billion in its last financial accounts.

The repayment was less than 10 days after Second Finance Minister Datuk Seri Husni Hanadzlah tabled 1MDB's roadmap to the Cabinet on May 29.

1MDB has repaid a US$975 million loan in full and months in advance of its due date. As a result, 1MDB has reduced its debt by almost RM3.6 billion, almost eight percent of its total debt.

This reflects 1MDB and the Finance Ministry's commitment and ability in addressing the company's debt levels.