Zeti: We warned 1MDB of debt dangers as early as 2014

Bank Negara had warned 1MDB that its ballooning debts were posing a risk to the country’s financial system as early as 2014, said its governor Zeti Akhtar Aziz.

"Of course this was on our radar screens," Zeti was today reported telling Bloomberg in Washington.

"We were monitoring in terms of the level of their indebtedness, and whether they had any systemic implications on the banking sector."

According to the report, 1MDB debts as of January stood at RM50 billion (US$12.8 billion).

She said Bank Negara had issued two memorandums to the Finance Ministry flagging the dangers of the fund’s mounting debt.

[More to follow]

Mkini