KUALA LUMPUR (Nov 6): As of Sept 30 this year, Malaysia's outstanding debt related to the controversial 1Malaysia Development Bhd (1MDB) stood at RM5.15 billion, according to Deputy Finance Minister I Datuk Seri Ahmad Maslan.

Ahmad Maslan stated that the Malaysian government has thus far serviced 1MDB debts totalling RM24.53 billion from 2017 to 2023, with payments of RM9.034 billion from 2017 to 2019, RM507 million in 2020, RM459 million in 2021, RM1.53 million in 2022, and RM13 billion in 2023.

"In 2024, we will only have to pay an interest of RM287 million, with the maturity period for this interest payment set for 2039. The final principal payment in 2039 will be RM5 billion," he announced while concluding his ministerial response on Budget 2024 on Monday.

Ahmad Maslan added that Malaysia is set to receive RM4.65 billion from Abu Dhabi's International Petroleum Investment Co (IPIC) next year as part of the settlement related to 1MDB.

This payment will increase the total in the trust fund to RM9.85 billion, which will be sufficient to cover the outstanding debt obligations of 1MDB amounting to RM5 billion.

As a result, Ahmad Maslan described the 1MDB issue as nearly resolved.

He also confirmed that Putrajaya is taking measures to counter the demands by Goldman Sachs, which commenced arbitration proceedings against the government. In August 2020, Goldman Sachs agreed to a US$3.9 billion (RM18.43 billion) settlement agreement with the Malaysian government in relation to the investment bank’s role in the 1MDB scandal.

Goldman Sachs filed the request for arbitration with the London Court of International Arbitration on Wednesday, claiming that Putrajaya is allegedly "violating its obligation to appropriately credit assets against the guarantee provided by Goldman" in the settlement agreement and recovery of other assets.

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