26.02.2015 - 1MDB: Malaysia’s Banking System and Sovereign Rating at Stake
The Malaysian ringgit declined by about 12 per cent against the US Dollar between September last year and February 10 this year. On February 18, when 1MDB announced its plan to break up its assets and wind down, the ringgit rose 0.2 per cent. The reason for the positive response was because the move will subsequently reduce its US$11.6 billion (RM42 billion) debt. 1MDB said it would make no new investments or take on new projects and stop borrowing money unnecessarily to refinance current debts. It also said it might sell assets and land development rights and enter into profit sharing joint ventures. A few days earlier, 1MDB settled a RM2 billion (US$550 million) loan it owed local banks, one of which was Maybank. The fund had three times requested and been granted extensions on repayment deadlines for the loan...............................................Full Article: Source