Bank Negara governor Muhammad Ibrahim has seemingly overlooked how the government paying 1MDB's debts will burden the public, said an exasperated PKR lawmaker.

"I understand his subtle warning to Prime Minister Najib Abdul Razak that the country's economy and finances will only recover when 1MDB's financial burdens are solved.

"However, it is as though (Muhammad) had forgotten that the government paying any of 1MDB's debts would actually torture the people even further," Pandan MP Rafizi Ramli said in a statement today.

He was responding to Muhammad's remarks yesterday, expressing confidence that the government would fulfil its obligations on 1MDB.

He had also said that market sentiment would improve once 1MDB's debts are dealt with.

Rafizi said the government had already taken on RM4 billion of 1MDB's debts when it took over SRC International, and RM2.4 billion when it took over Bandar Malaysia.

On top of this, he said Putrajaya may have to take on the US3.5 billion (RM14 billion) bonds guaranteed by International Petroleum Investment Co (IPIC), as well as US$1.83 billion (RM7.4 billion) from its sukuk issuances.

Based on this, he said, interest on the RM27.8 billion over the next 15 years would cost Putrajaya RM20.85 billion, making the total amount of debt ultimately paid for by the rakyat at RM48.65 billion.

Rafizi said this is about RM3.3 billion annually, money that could pay for construction of two public universities and three public hospitals every year.

1MDB defaulted on another interest payment yesterday, though IPIC has paid the US$52.4 million due.

The Abu Dhabi firm, however, said that it would claim back the payments along with a previous interest payout and other claims from the Malaysian fund.

Claiming that it has funds to spare, 1MDB said it deferred payment on the US$52.4 million because of the ongoing dispute with IPIC.