Govt. issues sovereign guarantee for STO’s loan to procure medicine, staples

The Maldivian government has issued sovereign guarantee for a loan taken out by State Trading Organization (STO) to import pharmaceuticals and staple food products required by Maldives.

According to information released by Finance Ministry, STO has taken out a USD 25 million loan from Hongkong and Shanghai Banking Corporation for which the government issued sovereign guarantee on January 31.

The government has issued sovereign guarantee for two loans taken out by STO last year; a USD 15 million loan taken out from International Islamic Trade Finance Corporation to procure pharmaceuticals and food products, and a USD 150 million loan taken out from the same bank to procure gas and fuel.

The state budget for 2021 has an allocation of MVR 365 million for subsidies on staple food products.

Records released by Finance Ministry show the national debt rose to MVR 86 billion by the end of last year.

The current government, after it assumed power, has issued sovereign guarantee for five loans.