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.
We have been working closely with the government in implementing measures to support businesses affected by the COVID-19 pandemic. The funding from EIB will give us the opportunity to extend this support further as the country progresses in its economic recovery efforts. We are delighted EIB was able to respond so swiftly to the challenges facing the Maldives in this unprecedented global situation. We look forward to continuing our work with the government to support sectors most affected by this crisis, build resilience and promote sustainable development”Tim Sawyer, Managing Director, Bank of Maldives
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.
The facility approved will contribute immensely to our efforts to support local businesses and protect livelihoods during the COVID-19 pandemic and the ensuing economic downturn. We extend our sincere gratitude to the EIB and all of our development partners who have extended their support to contribute to a recovery focused on building a more resilient Maldives”Ibrahim Ameer, Maldives Minister of Finance
EIB has thus far invested 115 million euros in the Maldives in three operations supporting the local energy and SME sectors.
