Minister of Finance Ibrahim Ameer has revealed a large amount from the USD 1.4 billion credit facility provided by the government of India will be utilised to conduct development projects.
Speaking to PSM News in New Delhi, the finance minister stated the debt of Maldives will not augment with the credit facility promised by the Indian government. Noting USD 200 million will be used as budget support, Minister Ameer revealed USD 50 million from the credit facility was provided as grant aid by the Indian government.
Moreover, Minister revealed USD 150 million is an investment to treasury bond via the State Bank of India with an interest rate of 1.5% for a period of two years. In this regard, emphasising the debt of Maldives will not increase, the finance minister said the treasury bill whenever needed can be sold in the domestic market and the treasury bond can be sold for a period of two years.
Furthermore, the minister said India has decided to increase the USD 200 million to Maldives under the SAARC currency source to USD 400 million via the Indian Reserve Bank. In the interview, Minister Ameer revealed USD 800 million from the credit facility will be utilised to conduct development projects.
The minister noted a credit facility line has been established for feasible projects proposed by Maldives with an interest rate of 1.5%. Although the Maldivian government has previously decided to sell USD 150 million as bond, the decision has been overturned as the Indian government arranged financial assistance with a lesser interest rate, he revealed.