The government has been told to disclose whether 1Malaysia Development Bhd (1MDB) has repaid its RM2 billion loan due on  Jan 31.

"So, what happened to 1MDB’s RM2 billion overdue loan?

 

"If 1MDB defaults on the RM2 billion loan, then the entire outstanding debt of 1MDB becomes due.  

"Under such circumstances, the Malaysian financial system may collapse under the enormous stress while the government’s credit ratings is bound to take a massive hit," said Petaling Jaya Utara MP Tony Pua in a statement today.

Pua said the government needed to come clean on the matter to preserve the country's financial credibility.

On Jan 30, Reuters reported tycoon Ananda Krishnan ( right ) will lend 1MDB the RM2 billion to settle a loan to Malayan Banking Bhd (Maybank) and RHB Capital Bhd.

The investment body has already missed its payments twice prior to this.

"However, a week after the last deadline to repay the debt, there has been a pin-drop silence as to whether 1MDB has been able to repay this RM2 billion loan.  

"Such silence only leads to the inevitable speculation that despite all the rhetoric coming from the government and 1MDB, the company has once again failed to meet the deadline," said the DAP parliamentarian.

"The Malaysian financial markets have been jittery over the ability of 1MDB to repay this debt because the deadline for repayment of the debt has not only been extended twice since November 2014, 1MDB actually has total outstanding loans exceeding RM42 billion," said Pua.

"This RM2 billion loan itself is part of a rescheduled and restructured debt it couldn’t pay in November 2013.  

"The Edge Financial Daily even reported that Bank Negara Malaysia has summoned the key executives of 1MDB over the issue and warned them of dire consequences, should they fail to meet the next deadline at the end of January," he added.

Therefore, said Pua, 1MDB's repayment of the loan was a matter of "irrefutable public interest" that demanded prompt answers from either 1MDB or the Finance Ministry.

"Finance and Prime Minister Najib Razak can no longer afford to remain silent on this issue without further eroding the confidence of the financial markets," he said, repeating his call for the Auditor-General to engage a "reputable independent auditor to uncover its financial shenanigans".

1MDB's huge loans and its missed payments have drawn criticism from both sides of the political divice.

Last week PKR vice president Rafizi Ramli raised warning bells for another US$1 billion (RM3.6 billion) loan to a group of foreign banks led by Deutsche Bank to be repaid by September 2015.

Meanwhile, veteran Umno leader and long-time PM Dr Mahathir Mohamad asked, "Why is there a need to borrow money to pay debts when you have RM8 billion (in the Caymans Island account)?"