Malaysia's central bank says confident government will honour debt obligations
[KUALA LUMPUR] Malaysia's new central bank governor said he was confident the government would honour all its debt obligations, as a deadline loomed on Wednesday for troubled state fund 1MDB to make a coupon payment on a US$1.75 billion bond.
"I'm quite confident the government will honour all of its debt obligations," Muhammad Ibrahim told reporters at the sidelines of an event in Kuala Lumpur. "Also, with the resolution of 1MDB, it will improve market sentiments," he added.
1Malaysia Development Berhad (1MDB) has to make a payment on a US$1.75 billion bond on Wednesday, but there was no indication yet on whether it would be paid.
Last month, 1MDB did not pay a US$50.3 million coupon on another US$1.75 billion bond, following a stand-off with Abu Dhabi sovereign fund IPIC, triggering cross-defaults on some of its other bonds.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Thames water crisis risks £100 billion UK investment plan
Indian central bank issues draft guidelines for web aggregators of loan products
Vietnam National Assembly head resigns amid graft purge
China central bank flags bond investment risks to some financial institutions: sources
Xi tells Blinken US, China should be 'partners, not rivals'
Indonesia’s push for regional economic integration to continue under Prabowo: Vivian Balakrishnan