India has formally extended a loan of USD 250 million to the Maldives ‘without conditions’ to help mitigate the economic blow to the country caused by the COVID-19 pandemic.
“The budgetary support of USD 250 million is extended without conditions,” The Indian mission in the Maldives said.
The loan was granted upon President Ibrahim Mohamed Solih’s request in an effort to mitigate the economic situation in the Maldives.
The loan has a tenure of 10 years for repayment with bi-annual ‘very low-interest payments’.
“Principal payment is due only at the end of 10 years, it will not put any immediate debt servicing liability other than bi-annual very low-interest payments,” the statement read.
Maldives is the only country to which India has provided such assistance to deal with COVID-19’s economic impact.
Maldives has been a beneficiary of India’s continuous assistance during the COVID-19 pandemic. From the consignment of 6.2 tonnes of medicines airlifted from 4 Indian cities to Male, to sending a team of doctors and specialists to visit Maldives in March, and sending 5.5 tonnes of essential medicines In April, Indian has always lent a helping hand to the country during the pandemic.