‘1MDB ca­pa­ble of ful­fill­ing fi­nan­cial com­mit­ments’

New Straits Times - - News | Story Of The Day -

KUALA LUMPUR: 1Malaysia De­vel­op­ment Bhd (1MDB) is ca­pa­ble of ful­fill­ing its fi­nan­cial com­mit­ments to In­ter­na­tional Petroleum In­vest­ment Com­pany PJSC (IPIC), Min­is­ter in the Prime Min­is­ter’s De­part­ment Datuk Seri Ab­dul Rah­man Dahlan said.

Rah­man said 1MDB had the funds raised from its on­go­ing ra­tio­nal­i­sa­tion.

“The in­ten­tion has al­ways been to pay and there is no prob­lem of pay­ing, as men­tioned by Prime Min­is­ter (Datuk Seri Na­jib Razak) be­fore — it is a reg­u­la­tory and tech­ni­cal is­sue,” he told NST Busi­ness yes­ter­day.

1MDB yes­ter­day paid US$360 mil­lion (RM1.55 bil­lion) of its debt to IPIC, a day ear­lier than its dead­line to­day.

In a state­ment, 1MDB said the pay­ment was pur­suant to the amend­ment dated Aug 8 to the set­tle­ment deed with Min­is­ter of Fi­nance (In­cor­po­rated) Malaysia and IPIC.

“1MDB has now re­mit­ted, to date, the equiv­a­lent of US$360 mil­lion to IPIC. The bal­ance of the orig­i­nal July 31 pay­ment obli­ga­tion to IPIC is ac­cord­ingly now due on Aug 31, 2017,” it said.

1MDB said all funds paid to IPIC were from pro­ceeds of the on­go­ing ra­tio­nal­i­sa­tion pro­gramme.

On Aug 8, IPIC had agreed to grant 1MDB an ex­ten­sion un­til the end of this month to meet its obli­ga­tions if a pay­ment of at least US$310 mil­lion was made by Aug 12.

This came af­ter 1MDB missed its orig­i­nal pay­ment dead­line of July 31, as well as an en­su­ing five­day ex­ten­sion due to tech­ni­cal is­sues.

Reit­er­at­ing that the de­lay was just a tech­ni­cal and reg­u­la­tory glitch, Rah­man said: “We ex­pect the full pay­ment to be done with­out any prob­lem.”

He said Malaysia’s econ­omy had chalked up a good num­ber in terms of trade and for­eign di­rect in­vest­ments, hence, the con­fi­dence level on the coun­try had never been bet­ter.

“This (1MDB is­sue) is just a tem­po­rary prob­lem and 1MDB is solv­ing it. I be­lieve this one will strengthen con­fi­dence and per­cep­tion fur­ther on Malaysia’s eco­nomic strength and re­silience.”

He said the lo­cal econ­omy was mov­ing at the right di­rec­tion at the time when some thought that it was not do­ing well.

“We have proven that in the first quar­ter, we have hit 5.6 per cent growth. All rat­ing agen­cies have up­graded our growth out­look and every­body is con­fi­dent.”

Rah­man said the coun­try was mov­ing for­ward with a lot of an­nounce­ments by the gov­ern­ment on in­fra­struc­ture projects.

“All of these are cat­a­lysts for fu­ture de­vel­op­ment and I truly be­lieve we have more to come.

“We will scale greater heights, eco­nom­i­cally speak­ing,” he said, not­ing that the ex­ports and in­vest­ments, as well as pri­vate con­sump­tion, were do­ing well.

“I don’t see the rea­son why the econ­omy can’t move for­ward as en­vis­aged by the prime min­is­ter,” he said.

Datuk Seri Ab­dul Rah­man Dahlan

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