EIB grants EUR 20 million as aid to support SMEs in Maldives
16 ޖޫން 2020 | އަންގާރަ 11:37EIB has thus far invested 115 million euros in the Maldives in three operations supporting the local energy and SME sectors
Ibrahim Ameer, Minister of Finance
The European Investment Bank (EIB) has signed a loan worth 20 million euros with the Maldivian government.
The loan was granted as part of the Team Europe Action to assist in the post-Covid-19 recovery efforts of the country's economy, protect jobs and support Small and Medium Enterprises (SMEs) operating in the travel and tourism industry sectors.
It is also expected to improve access to finance and reinforce the local banking sector and enable the island nation to recover faster from the economic impacts of the global pandemic.
The funds will be available to local SMEs at the Bank of Maldives and this loan is expected to be crucial for the stabilization of the local economy, with tourism contributing about 40% of the national GDP.
EIB revealed that this is the first Covid-19 related operation of the bank in Asia and a part of the 5.2-billion-euro support package for countries outside of the EU, on April 8.
However, this is the third operation for the EIB in Maldives since establishment in the island nation, during 2005.
EIB noted that It is helping the country reach its United Nations Sustainable Development Goals (SDG), and in particular SDG 3 (Good health and well-being), SDG 8 (Decent work and economic growth) and SDG 11 (Sustainable cities and communities). It also supports the European Union priorities in the region and the outcomes and commitments of the 2019 EU-Maldives dialogue, which paves way to a more sustainable and democratic Maldives.
Receiving the funds, the Minister of Finance Ibrahim Ameer noted that the government of Maldives fully appreciates the swift support provided by EIB during this time of crisis.
The aid further reinforces the close relationship shared between EU and the Maldives, said Ameer, who added that it was also demonstrated by the support from EIB after the devastating Indian Ocean Tsunami in 2004.
EIB has thus far invested 115 million euros in the Maldives in three operations supporting the local energy and SME sectors.
