Banks are nervous, 1MDB must show the money
YOURSAY ‘Don't believe me the money exists? Ask Arul Kanda.’
Foreign banks circle 1MDB over RM3bil loan
Anonymous_1392781899: In a nutshell, 1Malaysia Development Berhad (1MDB) bought land from government at super low price.
They used the land as basis to get loans by revaluing the land at current price. This loan money is meant for development of 1MDB. Somehow the money has gone somewhere else.
With no development and no revenue, 1MDB cannot service the interest, let alone pay off the loans on maturity date. They resorted to offer bonds to get more money.
Now they are in great debt as they still cannot generate enough cash to repay the banks. The question is what actually happened to the borrowed money?
Anonymous #37634848: I am puzzled. What did 1MDB do with the borrowed RM42 billion? Of course, it has the cheap land gifted by the government, thanks to PM Najib Razak, to do a project which is named after his father.
Now this land is being cannibalised to service its debts. What is 1MBD’s real business plan? Anyone knows? Can 1MDB CEO, board members, adviser, the Finance Ministry, etc, explain this?
Odin Tajué: What is RM3.6 billion to be paid when it has RM4 billion deposited with the BSI (Banca della Svizzera Italiana) in Singapore?
Don't believe me that the money exists? Ask 1MDB CEO Arul Kanda Kandasamy and adviser Najib Abdul Razak.
According to Najib himself, they have parked the money with the said bank so as to circumvent Bank Negara's rules.
Cantabrigian: 1MDB appears to function like a Ponzi scheme where money is taken from elsewhere to repay the initial creditors, creating a chain of debtors that sooner or later had to get some money somewhere else too in order to service the loans.
The pyramid is bound to collapse at any time due to compounding interest rates on the unpaid amount. Ask any Umno-BN man whether he would invest in 1MDB or not and you will hear them say "I wouldn't even touch 1MDB with a 10-foot pole".
In 1997, Mahathir saved the country from international bankers; in 2015 Najib handed Malaysia back to them on a silver platter.
Onyourtoes: Look, all the foreign creditor banks and bond investors are not exactly country bumpkins. If they choose to lend recklessly, we should let them face the consequences.
I hope they have not colluded with the borrowers thinking that the government of Malaysia will ultimately bear everything. I say, for once, let the loans go into default.
It is okay Malaysia could no longer borrow any more money. At least there will be less abuse. This same modus operandi has happened far too many times already.
Don’t pay, go into default so that lenders will open their eyes the next time they lend money. Sometimes borrowers cheat the lenders, sometimes they choose to be cheated.
Balachan Cili: Will this international 'Ah Long' splash red paint in Putrajaya if Najib can't re-pay the loans?
Nurul: Don't replace one 'bandit' with another
Kim Quek: Right on the dot, Lembah Pantai MP Nurul Izzah. The present system is beyond salvage - it’s rotten to the core.
Changing the captain (PM) without changing the broken-down engine (BN) would not save the ship (Malaysia) from drifting and sinking. It is only when a new engine (Pakatan Rakyat) is installed that we can safely navigate the ship to our destination.
Focus now on preserving and strengthening the Pakatan alliance, for which the coming PAS party election may present a major challenge.
We must do what we can to help an enlightened leadership to emerge in PAS so that Pakatan will be in a position to take full advantage of the present leadership crisis in Umno-BN. If that were to happen, Putrajaya will be within reach.
Fire_Rock: We don't know where we are going, but we are on our way - downhill, that is. PKR president Dr Wan Azizah Wan Ismail has already expressed her fear that Bank Negara Malaysia (BNM) might print the ringgit to resolve the country’s financial mess.
Today the ringgit is trading at 3.60 to the US dollar. Prior to GE13, it was RM3.05 to one US dollar.
Makcik Har: Well said, Nurul. Former PM Dr Mahathir Mohamad started the culture of despotism, cronyism, corruption and patronage. So much so Umno members are now brainless and easily led by the noses by corrupt leaders.
To save this country, Umno has to go. Of course, everything is not rosy in the opposition. But we have to look at the bigger picture. However, I believe PAS must be kicked out of Pakatan and DAP should attract more Malays.
Admittedly, thanks to the Umno education system, Mat Kampung is not comfortable talking to Jinjang Joe and vice versa. DAP’s Raub MP Arif Sabri Abdul Aziz should chew on this. How about it, DAP leader Lim Kit Siang?
Doc: Umno is like the famous ‘Ali Baba and the 40 thieves’ story. If you get rid of Ali Baba, in this case Najib, there are 40 thieves ready to take his place at the helm.
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