1Malaysia Development Bhd did not borrow any money from tycoon Ananda Krishnan to settle its debts, said the Finance Ministry.

 

This was the written parliamentary reply to a question from Tian Chua (PKR-Batu) on the alleged loan.

 

"Regarding the loan which 1MDB allegedly received from millionaire Ananda Krishnan, the report is not true," the Finance Ministry wrote on Wednesday.

 

1MDB was alleged to have received RM2 billion from Ananda to settle loans from RHB and Maybank, which was repaid on Feb 13 after three rare extensions.

 

The company's executive director Arul Kanda Kandasamy however dismissed the rumour as speculation.

 

The written reply also noted that 1MDB had withdrawn its US$2.318 billion offshore savings in the Cayman Islands in two tranches - the first of which was used to repay debts.

 

"The first tranche of US$1.215 billion has already been used to pay back loan interest, working capital, and other scheduled commitments.

 

"A second tranche of US$1.103 billion, is still being kept in foreign currency at BSI Bank Limited Singapore, and will be used to repay several loans in foreign currency scheduled for repayment this year," the reply read.

 

This was in response to Chua's query on why 1MDB had not used the Cayman funds to pay off its crushing debts.