Bangladesh has agreed to grant the Maldives a USD$200 million loan (approximately MVR3 billion).
A Bangladeshi newspaper reported that the decision to grant the loan had been made after a meeting between the Bangladeshi Foreign Minister and officials from the Bangladeshi Central Bank. Although the decision to grant the loan had not been finalised, the Central Bank had given their assurances that the loan would be granted.
As the loan had not been finalised, neither the duration nor the interest rate of the loan had been made public.
During an interview with a Bangladeshi newspaper, the governor of the Bangladeshi central bank, Fazli Kabir, disclosed several issues currently under discussion at the Bangladesh Institute of Development Studies. He said that as the Maldives had requested Bangladesh for a loan, this matter was also being discussed.
He said that the Maldives had requested a long-term loan, and the current thinking was to grant the loan.
Although Kabir had declined to disclose further details of the loan requested by the Maldives, it is worth noting that Bangladesh had loaned USD$250million to Sri Lanka in August.
This would be the second loan that the country gives out as its economy recovers.
As the Maldives seeks out a new loan, it is worth noting that the Solih administration has already raised the national debt to MVR 95 billion.