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Tuesday 12 May 2015

PKR warned not to use public funds to pay debt 1MDB

Rafizi (picture) said the loans made by 1MDB was reported in the international financial magazines and attract the attention of international financial markets.

Petaling Jaya: PKR today warned the federal government not to use public funds to resolve the debt 1Malaysia Development Berhad (1MDB) from a consortium of six international banks led by Deutsche Bank.

PKR vice-president, Rafizi Ramli said debts totaling RM3.6 billion was made in October last year, to be paid not later than September of this year.

Rafizis said loans made by 1MDB was reported in the international financial magazines and attract the attention of international financial markets at the time of the investment firm to deal with the problem of paying its debt to domestic banks.

"I tried to collect unofficial information from whistleblowers who work in the banks concerned and of the financial markets to get a clearer picture of these loans.

"Unofficial information which I find very worrying because the terms of the loan was to burden the people," he said at a press conference at the party headquarters.

Pandan MP said, based on the information obtained, collateral-collateral loans are savings in BSI Singapore 1MDB previously been reported does not exist.

He said that if security does not exist, there is most likely 1MDB need to get other funds to replace the collateral

"I was informed of a letter issued by the Putrajaya allowing these loans approved to 1MDB. What the terms of the letter of support that?" he asked.

Rafizis PKR secretary-general also questioned the interest rate charged within a year of that.

"Is it true that the interest rate for one year was 11% as notified to me? If true, this rate had already reached the level of 'overdraft' and shows the desperate 1MDB," he said.

Rafzi also worry if the loans made by 1MDB this is another "bail out" people who had suffered following the debt should be paid in the near future.

"Before, every time 1MDB to pay its debts, the government had to inject money or one that hurts the transaction will occur," he said.

He gave two examples of government had to inject money the investment firm, which is the last in March 2015, when the government had to inject RM950 million in the form of "standby credit" which happened a few weeks passed before 1MDB have to pay the debt.

In addition, in May 2015, Pilgrims Fund Board to buy real estate in the Tun Razak Exchange (TRX) of 1MDB at many times the rate of profit to 1MDB who happened to be finalized a few weeks before 1MDB have to pay the debt.

"I'm sure if people are not urged Prime Minister Datuk Seri Najib Razak apply transparent about RM3.6 billion of debt due by September this 1MDB, more public funds and state property will be injected into 1MDB to pay this debt," he said.

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