Parliament approves guarantee for STELCO

Parliament has today extended the government guarantee to Bank of Maldives (BML) on which the bank runs an overdraft facility of MVR 50 million for the State Electric Company Ltd (STELCO).

The guarantee was approved to be extended until March 2014.

The parliament voted on extending the government guarantee today, which recieved 31 votes in favour and17 against, out of a total of 48 votes.

The loan guarantee was first granted by parliament in September 2009 and was set to expire this year. The request to extend the guarantee was made through a letter sent by the President Dr. Mohamed Waheed Hassan Manik to the Speaker of the Parliament Abdulla Shahid. The issue was reviewed by the Parliament Public Accounts Committee, which had recommended that the guarantee be extended until 30th March 2014.