Maldives finance ministry has signed an agreement with India’s Export-Import bank (EXIM) for line of credit (LOC) of 800 million US dollars to finance the new government’s infrastructure projects.
Maldives Finance Minister Ibrahim Ameer told media that the agreement with EXIM Bank was signed in presence of External Affairs Sushma Swaraj two-day visit to Male which concluded on Monday.
He said the concessional loans will be used to provide water and sewerage services on several islands.
The LOC is part of 1.4 billion US dollars finance assistance announced by Indian government during President Ibrahim Mohamed Solih’s state visit in December.
The EXIM Bank loans come with a 1.75 percent interest rate and a 15-year repayment period after five years of moratorium.
The finance minister said detailed proposals for water and sewerage projects on 30 islands have been shared with the EXIM Bank.
Three other deals were signed during Sushma Swaraj’s first visit since the new government took office including agreement on exempting diplomatic and official passport holders from visa requirements, MOUs for collaboration on renewable energy and grant assistance for high impact community development projects through local bodies.
The external affairs minister also announced the Indian government’s decision to renew the quota for essential commodities, including river sand and stone aggregate for three years with effect on April 1.