India grants $ 250 million ‘unconditional’ loan to Maldives to overcome economic impact of COVID-19 | India News

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NEW DELHI: India has officially extended the $ 250 million loan to the Maldives to help ease the economic impact of the COVID-19 coronavirus pandemic. The Indian mission in the Maldives said in a statement: “The budget support of 250 million dollars is extended without conditions”.

The grant, granted under the most favorable conditions possible, was presented at a ceremony in Malé, the Maldivian capital, in the presence of the Minister of Foreign Affairs of the Maldives Abdulla Shahid, the Minister of Finance Ibrahim Ameer, the High Commissioner. Indian Sunjay Sudhir and the CEO of SBI in Male, Bharat Mishra. .

This was in response to President Ibrahim Mohamed Solih’s request to Prime Minister Narendra Modi to overcome the difficult economic situation in the Maldives.

Explaining, “The government of Maldives is free to use the money to repair the national economic situation in accordance with its own priorities.” The financial aid was first announced in a virtual meeting with Foreign Minister S Jaishankar and provided through a sale of Treasury bonds to the State Bank of India (SBI), Male , which has a 10-year repayment term, the embassy said.

The budget support of $ 250 million has a 10-year repayment term and given that “the principal payment is only due after 10 years, it will not place any immediate debt service commitment. that very low semi-annual interest payments, “the press release read.

This development contrasts with Chinese loans to the country under the previous Yameen administration, which were a source of concern in terms of the debt crisis it precipitated. The Maldives is the only country to which India has provided such assistance to deal with the economic impact of Covid.

India has provided substantial and continued assistance to the Maldives during the COVID-19 pandemic. A team of doctors and specialists traveled to the Maldives in March to help prepare for COVID. A shipment of 5.5 tons of essential drugs was donated in April, another shipment of 6.2 tons of drugs was airlifted from 4 Indian cities to Male by the Indian Air Force and 580 tons of drugs food aid was provided in May.

In addition, around 500 Maldivians divided into 8 Maldivian patient groups have visited India in the past few weeks.

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