KUALA LUMPUR: The government has received the first payment of RM1.8 billion from AMMB Holdings Bhd (Ambank Group).
This is the partial amount related to AmBank's RM2.83 billion 1Malaysia Development Bhd (1MDB) settlement.
The RM1.8 billion had been deposited into the government's assets recovery trust account, the Finance Ministry said in a statement today.
The remaining settlement payment of RM1.03 billion would be settled by Ambank in December 2021 and July 2022, amounting to RM515 million each, the ministry added.
To date, the trust account - under the custody of the Accountant General's Department of - has received a total of RM18.176 billion seized or returned or settlement in connection with 1MDB.
The ministry said the funds had been and would be used to settle the outstanding debts of 1MDB and SRC International Sdn Bhd.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said to date, the government had repaid RM12.54 billion of 1MDB's debt and RM3.8 billion of SRC's debt.
"As at June 30, 2021, the outstanding debt comprising principal and coupons/ profit/ interest for bonds, sukuk and term loans, amounted to RM39.66 billion (1MDB) and RM1.85 billion (SRC).
"However, the current balance of the Trust Account is only enough to pay off the principal and interest of 1MDB's debt for 2021 and 2022 only," he said.
The ministry said once all the trust account funds were utilised, the government would continue to bear the obligation to pay the balance of 1MDB's debts, whose issuance were backed by government guarantee and letter of support.
"The Ministry of Finance will always ensure adequate allocation to settle the debts of 1MDB and SRC, in order to manage the national financial burden created through these entities," it said.