THE government is still facing a shortfall of RM17bil to repay loans and interest incurred by 1Malaysia Development Bhd (1MDB), says Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

       He added the government has so far repaid the company’s loans and interest amounting to RM13.31bil from the 1MDB Assets Recovery Trust Fund.

       “Presently, there is still a balance of RM15.76bil under the trust fund which is insufficient to repay 1MDB’s entire principal loan and interest,” he said when winding up his ministerial replies on the Motion of Thanks on the Royal Address.

       Tengku Zafrul said that the government is expected to recover RM511mil from Ambank and about RM4bil (US$954mil) from Goldman Sachs.

       “This means the government will still face a shortfall of RM17bil to repay back the sum of RM38.8bil for principal loan and interest incurred by 1MDB covering the period from 2023 until 2039,” he said.

       He also denied recent claims by former prime minister Datuk Seri Najib Razak that the repayment of 1MDB’s debts did not involve the use of the rakyat’s money.

       “Public funds were and are still being used to repay 1MDB debts,” he said, adding that the government was forced to provide loans and advances totalling more than RM10bil to the ministry for the purpose.

       Telling it like it is: Tengku Zafrul says the government has to repay 1MDB debt totalling RM38.8bil. -— Bernama

       On a separate matter, Tengku Zafrul said that the government is still able to meet its financial commitments despite facing recent economic challenges.

       He noted that the government had forecast the fiscal deficit to be 6.5% of the GDP under Budget 2022.

       However, based on better economic performance and revenue, he said the fiscal deficit was at 6.4% of the GDP.

       Tengku Zafrul also informed the House that the nation’s statutory debt currently stood at 63% of the GDP, which is below the 65% permissible threshold previously approved by Parliament.

       He said that Malaysian Government Securities (MGS) and Malaysian Islamic Treasury Bonds made up 59.7% of statutory debts, totalling RM922bil.

       He also said that nation’s debt exceeded over RM1tril which was inherited from the previous administration.