The United Arab Emirates has agreed to loan a sum of USD 50 million as state budgetary support for the Maldives.

An official from the Maldivian Ministry of Foreign Affairs says that the loan has long pay-back period and an interest rate of just three percent.

The official said that specifics of paying back the loan is yet to be decided, and will be finalized on conditions that are ‘easy’ for both governments.

President Ibrahim Mohamed Solih and several senior government officials visited the UAE in mid-January, where a committee on cooperation between both governments was established.

The government also signed a memorandum of understanding for cooperation on harnessing renewable energy sources.