KUALA LUMPUR: Malaysia's 1MDB has not set itself a debt reduction target as more than three quarters of its debt is long term, the state fund's new chief told Reuters in an interview.
The company earlier announced plans to explore asset sales as well as the sale of development rights in prime property projects as it seeks to cut down on $11.6 billion in debt - a burden which has weighed on the ringgit and the Malaysia's sovereign credit rating.
"There are no targets as such the main reason for that is bulk of our debt is long term debt," Arul Kanda, president and group executive director of 1MDB, said
"Of the short-term debt maturity the 2 billion ringgit debt was the biggest, which has now been paid," he said.
1MDB settled a 2 billion ringgit loan it owed to banks last week but financial sources have said it needed a loan from Malaysia's second-richest man Ananda Krishnan to do so.
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