Chua defends 1MDB, says banks’ extension on its loan shows confidence in the company

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KUALA LUMPUR (Jan 20): Deputy Finance Minister Datuk Chua Tee Yong appeared to defend 1Malaysia Development Bhd today, saying "some" companies also required an extension for their loan repayments.

Asked to comment on reports that the 100%-owned sovereign wealth fund of the Finance Ministry was seeking a third extension to repay its RM2 billion loan, he said if banks were to grant the extension, it would reflect the banks’ confidence in 1MDB.

“For banks to allow (an) extension, this also shows that they have a certain confidence in the company,” he told reporters, after opening the Malaysian Business Student Summit 2015 at Universiti Malaya’s Faculty of Business and Accountancy.

“Every company has its proper way of financing structure. Some companies also require an extension (to repay loans),” he added.

News report had it that 1MDB is seeking a third extension to repay its RM2 billion loan, that was originally due on Nov 30, 2014.

The third extension is being sought to allow time for the investment company to sell a stake in its energy unit, the news report stated.