The government of the Maldives has secured a $75 million loan from China's Exim Bank, as revealed in documents shared by the Finance Ministry with the Parliament's Finance Committee.
This loan is intended to refinance a portion of a previous loan taken out in 2015 for the Velana International Airport project.
In 2015, the Maldivian government borrowed $378 million from China's Exim Bank for the airport's development. The recent refinancing of $75 million will help manage this debt more effectively.
According to the submitted documents, the new loan terms include a six-year repayment period, a three-year grace period, and an interest rate of 2%. By the time the loan is repaid in 2030, the total repayment amount, including interest, will be $78 million.
The decision to refinance the loan came after approval from President Dr. Mohamed Muizzu during his visit to China in January. The Finance Ministry noted that this move was necessary due to the deteriorating financial situation in the country and the adverse impact on foreign currency reserves.
This loan is intended to refinance a portion of a previous loan taken out in 2015 for the Velana International Airport project.
In 2015, the Maldivian government borrowed $378 million from China's Exim Bank for the airport's development. The recent refinancing of $75 million will help manage this debt more effectively.
According to the submitted documents, the new loan terms include a six-year repayment period, a three-year grace period, and an interest rate of 2%. By the time the loan is repaid in 2030, the total repayment amount, including interest, will be $78 million.
The decision to refinance the loan came after approval from President Dr. Mohamed Muizzu during his visit to China in January. The Finance Ministry noted that this move was necessary due to the deteriorating financial situation in the country and the adverse impact on foreign currency reserves.
