USD 800M credit will be used for development: Finance Minister
Minister Ameer said that details of some of the projects planned by the government has been shared with India’s Exim Bank
Finance Minister Ibrahim Ameer
The USD 800 million credit facility from India will be used to fund water and sanitation projects in islands across the Maldives, Finance Minister Ibrahim Ameer has said.
Speaking to the press after signing an agreement to receive the credit on Monday, Minister Ameer said that details of some of the projects planned by the government has been shared with India’s Exim Bank and Indian authorities.
In addition to developing clean water systems in the islands, the government has also planned to use the funds move the commercial port in the capital to Thilafushi island of Kaafu atoll.
Under Monday’s agreement, the government is required to provide details of projects for which they need funding to the Exim Bank, which will decide whether or not to approve and fund it.
The Maldives in December accepted USD 1.4 billion in credit from the India government, announced by Prime Minister Narendra Modi himself during President Ibrahim Mohamed Solih’s visit there.
While MVR 200 million of this amount is earmarked for budgetary support this year, the remainder is to be the credit line agreed on Monday, which will be used as its required.
The Finance Ministry has addressed criticism over the massive loan, to say that the credit will not exasperate Maldives' national debt.
