Thursday 11th Aug 2022
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India

Maldives to Borrow USD 40 Million from India

The Government of Maldives has signed a USD 40 million (MVR 616 million) Line of Credit Facility Agreement with India's EXIM bank.
The Finance Ministry clarified that this line of Credit would exclusively support Sports Infrastructure Development projects in the Maldives. The signing of the agreement was held today. The agreement was signed by Finance Minister Ibrahim Ameer and from EXIM’s bank Nirmat Ved.
While the government had signed the agreement with EXIM bank, they have already provided USD 400 million from India's EXIM Bank. Apart from this, the government has also taken loans from the state bank of India.
It is estimated by the Finance Ministry by the end of this year state will be MVR 79 billion in debt. That is a debt to GDP ratio of 128. In the last year, state debt to GDP was at 115 which is MVR 67 billion.
Due to the uprising amount of debt in the Maldives recently Moody's Investment Service has lessened the credit amount to the Maldives.