India Aid: USD 200 mil for budget support, USD 800 mil for projects

Source: Raees Office

Maldives Finance Ministry announced the Indian Government aid amounted to USD 200 million for budget support, USD 800 million for state projects and USD 400 million as currency swap.

Finance Minister Mr. Ameer professed that out of the MVR 1.4 billion provided by the Indian Government USD 200 million for budget support was included in the aid. Out of the USD 200 million received as budget support, USD 50 million was used for free aid. The rest of the USD 150 million was treasury bond. The money received as free aid would be received in the coming January of 2019.

The money received for state projects is provided under Line of Credit. Within the agreement, the interest rate for the line of credit is 1.5%. In addition, USD 400 million is the currency swap which should be utilized in times of needs by the Maldives Monetary Bank.

The current presidency is prioritizing the ties between India and the Maldives. Last week, India has provided USD 25 million dollars as free aid, which was in addition to the USD 1.4 billion provided recently.

Minister Ameer further stated that the Loan and Credit facility would be used in a optimal manner that would not allow for further incurring of debt.

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