KUALA LUMPUR: The government has received RM1.8bil from AMMB Holdings Bhd, the first payment representing the partial settlement related to 1Malaysia Development Bhd (1MDB).

       The Finance Ministry said the amount has been deposited into Malaysia’s Assets Recovery Trust Account.

       “The remaining settlement payment of RM1.03bil will be settled by AMMB in December 2021 and July 2022, amounting to RM515mil each, ” it said in a statement yesterday.

       To date, the trust account – under the custody of the Accountant General’s Department of Malaysia – has received a total of RM18.176bil of funds seized/returned or settlement in connection with 1MDB.

       These funds have been/will be used to settle the outstanding debts of 1MDB and SRC.

       Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said: “To date, the government has repaid RM12.54bil of 1MDB’s debt and RM3.8bil 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 RM39.66bil (1MDB) and RM1.85bil (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.”

       Once all the trust account funds are utilised, the government will continue to bear the obligation to pay the balance of 1MDB’s debts, whose issuance were backed by government guarantee and letter of support.

       Zafrul said the Finance Ministry 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.