He explained that the only government guarantee that 1MDB held was a sukuk guarantee worth RM5.8bil.
“There is a letter of support released by the Malaysian Government worth US$3bil. However, this does not provide an explicit guarantee by the Government,” he told reporters at a press conference at Parliament lobby, Wednesday.
In an explicit government guarantee, if 1MDB defaults on its loan, the Government will have to pay bond holders the sum owed to them. In the case of a letter of support, if 1MDB is unable to pay its loan, the investment arm will have to restructure its assets to pay the loan.