India extends 250 million dollars loan to Maldives to deal with COVID-19 economic impact

The Indian government has extended a 250 million- dollar loan to the Maldives government to combat the impact of COVID-19. The High Commission of India shared the news on September 20, 2020.

The loan was handed over at a ceremony in the presence of Maldives Finance Minister Ibrahim Ameer, Foreign Minister Abdullah Shahid, CEO of SBI in Male, Bharat Mishra, and Indian High Commissioner Sanjay Sudhir.

The government decided to extend the loan in response to the request for financial assistance made by Maldives President Ibrahim Mohamed Solih to PM Narendra Modi.

India has proven time and time again that the Maldives-India partnership will be a high priority! While the whole world has had to close their borders, and their homes, India has proven that #Covid19 will not force them to close their hearts to the Maldivian people.

— Abdulla Shahid (@abdulla_shahid) September 20, 2020

Key Highlights:

As per the High Commission of India in the Maldives, the 250 Million dollars assistance provided by India to the Maldives, as revenue and budgetary support for mitigating the impact of the COVID-19 pandemic on the Maldivian economy.

Under this, the State Bank of India (SBI) will subscribe to a Treasury Bond issued by the Maldivian Government with a comfortable 10-year tenor.

The financial assistance is the largest financial support package that has been announced by a bilateral partner during the COVID-19 pandemic.

The loan was announced after the virtual meeting between S Jaishankar, External Affairs Minister, and Abdullah Shahid, Maldives Foreign Minister, in early 2020.

Maldivian government on receiving financial assistance:

Abdullah Shahid, Maldives Foreign Minister thanked India for the provided financial assistance. He also spoke in Hindi and termed India as a ‘Mahan Mitra’ of the Maldives during the tough times caused by the COVID-19 pandemic.

Through video, he shared that the whole world has been currently fighting a battle that it has never forced before. This epidemic has forced many governments and countries to close their borders and homes but our ‘mitro’ has proven that this epidemic cannot force them to close their hearts. India during these times has been a great friend.

Abdullah Shahid further informed that with the USD 1.4 billion finance package that was announced in December 2018 and the cash grants for the community projects, this will be by far the largest single donor assistance the Maldives has received.

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