1MDB debt at RM32.08 billion as of June, says finance minister

1MDB's remaining debt commitment was RM32.08 billion as of June 30, with an estimated foreign exchange rate of US$1 to RM4.50, Finance Minister Tengku Zafrul Aziz said today.

He said the government had, between April 2017 and May 2022, channelled financial assistance in the form of loans or advances totalling RM10.85 billion through the finance ministry and Minister of Finance Incorporated (MoF Inc) to pay off 1MDB’s debt commitments and interest.

"Besides the government’s direct financial assistance, 1MDB's debt interest is also being financed using 1MDB's asset recovery funds kept in a trust account under the MoF, known as the Asset Recovery Trust Account," he said in a written reply in Parliament.

Tengku Zafrul said that as of June 30, the total amount of 1MDB funds recovered amounted to RM19.28 billion in various foreign currencies, including the US dollar, Singapore dollar and Australian dollar.

"These funds have been and will be used for the purpose of paying off 1MDB's debt. As of June 30, 2022, RM10.84 billion had been used to repay 1MDB’s debt.

"This fund still has a balance of RM8.83 billion currently (including hibah, and forex gains or losses)," he said.

Adding that the recovery process for 1MDB's funds was ongoing, he said it was a complicated and lengthy process that could take years.

"It not only involves collaboration between several local and foreign agencies, it also involves legal and negotiation settlement processes," he said.

However, the finance minister said the government remained committed to using legal action or negotiations to continue efforts to recover all of the embezzled funds.

The main goal is to maximise returns to pay off 1MDB's debt and reduce the government's financial burden, he said.