India extends 250 million dollars support to Maldives to overcome economic impact of Covid-19
lndia has provided financial assistance of 250 million dollars as budgetary support to the Maldives government to mitigate the economic impact of the COVID-19 pandemic. A handover ceremony was held today at the Ministry of Foreign Affairs, Maldives government to mark the occasion. Maldives Foreign Minister Abdulla Shahid, Finance Minister Ibrahim Ameer, High Commissioner Sunjay Sudhir and CEO, SBI, Male Bharat Mishra were present on the occasion.
Speaking on the occasion in Hindi, the Maldives Foreign Minister said, India has proved to be a great friend during this difficult time of pandemic.
The 250 million dollar budgetary support was a response to the request made by Maldives President Ibrahim Mohamed Solih to Prime Minister Narendra Modi for financial assistance to overcome the difficult economic situation in the Maldives. AIR correspondent reports it is being provided under the most favourable terms possible to the Government of Maldives.
India has provided substantial and continued assistance to the Maldives during the COVID-19 pandemic. The budgetary support of 250 million idollars has been extended without conditions. Maldives government is at liberty to use the money in repairing the domestic economic situation in line with its own priorities. The financial assistance is being routed through SBI, Male so that it does not reflect in the external borrowings of the Maldives. Indian government has provided a sovereign guarantee to SBI for this financial assistance.
The soft loan has a comfortable tenor of 10 years and a very low interest rate. Since the principal payment is due only at the end of 10 years, it will not put any immediate debt servicing liability other than bi-annual interest payment. Maldives is the only country to which India has provided such assistance.