The Malaysian government will shell out a total of RM1.688 billion for 1MDB interest payments this year alone, says Finance Minister Lim Guan Eng.

“I think it is also useful to inform Malaysians that this is the heavy price we have to pay because of the 1MDB scandal. 

“Just this year alone we have paid RM1,688 million in terms of interest. This is not a small sum,” he told reporters at Parliament today.

The government had recently paid US$50.3 million (RM208.8 million) in interest for the 1MDB Energy (Langat) Ltd bond, Lim said.

He added that there are two more 1MDB interest payments to be made this year - for the 1MDB Energy Ltd due on Nov 11 (RM217.51 million) and another for a sukuk Islamic bond (RM143.75 million) due on Nov 29.

The RM1.688 billion figure includes these two upcoming interest payments.

Lim said that the government will continuing servicing these interest payments to prevent the country from going into default.

“We will not allow Malaysia to go into default because we do not want to affect not only our international reputation but also our status in the ratings agencies,” he said.