Govt borrows 50m euros from private creditor for budget support
The government, however, did not disclose important details like interest and repayment terms.
The government has taken a loan of 50 million euros (MVR 842.8 million) from a foreign private party for budget support.
According to the latest foreign borrowing data by the finance ministry, the government had taken a euro loan from a private entity on June 18 for budget support.
The government, however, did not disclose important details like interest and repayment terms.
A finance ministry official declined to provide details, and asked to file a Right to Information (RTI) request.
In addition to the euro loan, the government has taken two new loans from foreign entities this year:
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The two loans were taken from the World Bank on June 18
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$19.7 million (MVR 303.8 million) as loan for a project to promote fisheries in the Maldives
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$5.6 million (Rs 86.4 crore) as loan for a project aimed at boosting business competitiveness and improving the governance of State-Owned Enterprises (SOEs)
According to estimates in this year's budget, MVR 11.5 billion is needed to plug the 2023 budget deficit. The government plans to finance the deficit:
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Foreign loans – MVR 4.1 billion
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Green/Blue bonds - MVR 771 million
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Budget support from bilateral creditors - MVR 1.5 billion
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Domestic loans and bonds – MVR 4.7 billion
