MVR 3 billion withdrawn in loans so far this year

MVR 3 billion (USD 213 million) has been withdrawn for various government projects so far this year.

Finance Ministry disclosed the details of the government’s loans and sovereign guarantee on Tuesday.

The details of the loan withdrawn by the government so far this year are as follows;

• 187 Saudi Riyal (MVR 767 million/USD 49 million) from Saudi Fund for Development for health sector development project
• 375 million Saudi Riyal (MVR 1.54 million/USD 99 million) from Saudi Fund for Development for Velana International Airport development project
• 7.6 million in special drawing rights (MVR 157 million/USD 10.2 million) from Islamic Development Bank to assist SME Impact Fund
• USD 30 million in installment sale (MVR 460 million) from Islamic Development Bank to assist SME Impact Fund
• 3 million Kuwaiti Dinar (MVR 150 million/USD 9.83 million) from Kuwait Fund for Arab Economic Development for Small Islands Hospital Project

The government also provided sovereign guarantee for two loans so far this year. They are:

• Two loans of MVR 230,850,000 (USD 15 million) from Bank of Ceylon for submarine cable system project

Maldives’ foreign debt is expected to climb up to USD 557 million next year and USD 1 billion by 2026.

Most of Maldives' foreign debt burdens are owed to India and China including loans withdrawn for various development projects and to overcome the difficulties posed by the COVID-19. While India has postponed the repayment of some of the loans, China has also greenlighted the postponement of some loans.