Malaysia Central Bank Head Confident of Government Debt Promise
- State investment fund 1MDB defaulted on debt last month
- Credit rating companies see limited impact on sovereign
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Malaysia’s new central bank governor said he is certain the government will meet all its debt obligations, responding to queries about 1Malaysia Development Bhd. as another coupon payment looms for the state investment company that defaulted last month.
The Malaysian government has assured it will fulfill its commitments, Muhammad Ibrahim said in Kuala Lumpur on Wednesday in his first public remarks to reporters as governor. He was responding to a question on concerns about Malaysian sovereign risk arising from a 1MDB default. The fund has a $52.4 million interest payment due Wednesday on $1.75 billion of bonds maturing in 2022.