Trust account funds has a balance of RM15.76 bln to repay 1MDB's 2022 debt - Tengku Zafrul

KUALA LUMPUR: 1MDB's Assets Recovery Trust Account still has a balance of RM15.76 billion, including from hibah and foreign exchange gains/losses, to repay most of the principal and interest on 1MDB debt in 2022.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said to make up for the shortfall of funds, the government had allocated RM1.53 billion for the purpose of repaying interest on 1MDB's debt in 2022.

Based on 1MDB's debt settlement cash flow, he said the expected settlement fund to be received from AmBank is RM515 million while the remaining asset recovery guarantee by Goldman Sachs is approximately US$954 million.

"The government still needs to make up for the shortfall of funds of RM17 billion for the purpose of settling the principal and interest on 1MDB's debt of RM38.8 billion for the period of 2022 to 2039," he said when responding to a question from Karupaiya Mutusami (Padang Serai-PH) during a ministerial question time at the Dewan Rakyat today.

Tengku Zafrul's written answer was read by the Minister in the Prime Minister's Department (Religious Affairs) Datuk Idris Ahmad. Tengku Zafrul was absent during today's sitting.

Following the financial problems faced by 1MDB, Tengku Zafrul said the government had channelled financial assistance in the form of loans or advances amounting to RM10 billion from April 2017 to November 2021.

He said these funds were channelled through the Ministry of Finance and the Minister of Finance Incorporated (MoF Inc.) for the purpose of payment of commitments and interest on 1MDB's debt.

"Besides direct financial assistance from the government, the payment of interest on 1MDB's debt is also funded using 1MDB's asset recovery funds which is accounted for in a trust account under the Ministry of Finance (MoF) called the Assets Recovery Trust Account," he said.

As at Feb 28, 2022, he said 1MDB's total asset recovery funds that have been recovered was RM19.14 billion in several foreign currencies, including the US dollar, Singapore dollar and Australian dollar.

Tengku Zafrul said the funds had been and would be used for the purpose of repaying 1MDB's debt, for which until Feb 28, 2022, a total of RM3.31 billion had been used for the purpose of repaying 1MDB's bond/sukuk interest.

"This brings the total payment made by the government/ MoF Inc. to RM13.31 billion," he added.

Meanwhile, the total loan repayment paid to the Retirement Fund Incorporated (KWAP) was RM5.06 billion between 2014 and Feb 28, 2022.

He said the total payment consisted of RM314.72 million paid by SRC International Sdn Bhd, while the amount paid by the government was RM4.74 billion.

"This amount includes the principal payment, profit and ta'widh (compensation to the borrower as a result of the delay)," he added.

Tengku Zafrul said the final repayment for the financing from KWAP was scheduled for March 28, 2022 amounting to RM610.22 million and all payments made by the government were from government financial sources.

-- BERNAMA