Goldman Pays Malaysia $2.5 Billion 1MDB Payment
Goldman Pays Malaysia $2.5 Billion 1MDB Payment
(Bloomberg) -- Goldman Sachs Group Inc. has made the $2.5 billion payment it pledged to the Malaysian government to settle allegations of misconduct related to 1MDB, and the funds will be used to repay outstanding debt of the disgraced state fund, according to a person familiar with the matter.
Malaysia plans to use the funds to help repay 1MDB’s outstanding debt, including $3.5 billion of bonds due in 2022 and 2023, which are now held under the finance ministry, according to the person, who asked not to be named as the information is private. The finance ministry confirmed that it has received the money in its escrow account on Thursday, according to a spokesman.
A representative for Goldman Sachs declined to comment.
The payment is part of an agreement Goldman Sachs reached with Malaysia to pay $2.5 billion in cash and guarantee the return of $1.4 billion from 1MDB assets seized around the world. In return, Malaysia will drop criminal charges against the U.S. bank, allowing it to start moving beyond one of its worst scandals since the financial crisis.
The money comes at an opportune time for Malaysia, which is seeking funding to shore up an economy battered by the pandemic. The government is set to boost its debt limit for the first time since 2009 to help fund its $70 billion of stimulus measures.
Goldman Sachs will have a case management hearing over its criminal charges at a Malaysian court on Sept. 4, a date that was set before the July deal was struck.
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