Prime Minister Najib Abdul Razak has said 1MDB, which has incurred debts up to RM50 billion as of January 2016, has cleared all its bank debts and short-term debts.

"For now, 1MDB does not have any bank debt and short-term debt," said Najib, in his capacity has finance ministry, said in a written parliamentary reply yesterday.

According to the ministry, 1MDB made the following repayments:

  1. Paid off RM229.5 million revolving credit facility to Affin Bank in full by Nov 23, 2015.
     
  2. Cleared RM950 million standby credit to the government in full by March 31, 2016.
     
  3. Repaid RM2 billion term loan facility to Marstan Investment NV by April 8, 2016.
     
  4. Cleared US$150 million term financing facility with EXIM Bank by April 15, 2016.

Najib was responding to Er Teck Hwa (DAP-Bakri) who requested the updated figures on 1MDB's staff, cash flow, debts and assets. 

"Due to the ongoing rationalisation plan of 1MDB, there are no new assets acquired (by the state-owned firm) in the country and overseas, in 2015 and 2016," added the prime minister. 

Under the 1MDB rationalisation plan, Najib noted that 1MDB had reduced its staff strength from 35 as of Dec 31, 2015 to 17 as of Dec 31, 2016.

"By selling off the Edra Global Energy Bhd's asset, Syarikat Bandar Malaysia Sdn Bhd's equity and the land for the Tun Razak Exchange project, 1MDB acquired RM10.97 billion in 2015 and 2016," he added.

According to Public Accounts Committee's (PAC) report on 1MDB, the state-owned fund's debt had increased 10 times, from RM5 billion in 2009 to RM50 billion in 2016.

1MDB reportedly had paid RM3.3 billion in interest from April 2013 to March 2015.

1MDB, with assets valued at RM53 billion as of January 2016, had since stripped various assets and equity stakes to clear off its debts.