India Gives $250 Million Loan To Maldives As COVID-19 Economic Relief Fund
The Maldivian Foreign Minister Shahid Abdulla thanked the Indian government for standing by his country even during the COVID-19 crisis
India has extended a soft loan of 250 million dollars to the Republic of Maldives to help the small island nation to recover from its current financial crisis caused by COVID-19.
The aid was welcomed by the Maldivian Foreign Minister Abdulla Shahid who said that it would help bridge the revenue gap and meet the government’s immediate needs. The pandemic caused a massive impact on the country’s economy that thrives largely on the tourism and hospitality industry. The loan must be repaid after 10 years and has been extended on promising terms by India.
The monetary relief was first offered during Abdulla’s virtual meeting with his Indian counterpart S. Jaishankar on August 13. It was then officially handed over at a ceremony in the Maldives capital, Male, in the presence of their foreign minister.
According to the Indian mission in Maldives, the government has the freedom to use the funds as per their discretion and priorities. This contrasts with the Chinese loans that were given to the nation’s previous administration, leading to concerns over a possible debt crisis for the international holiday destination.
Since the beginning of the Coronavirus crisis, India has stood by the south Asian country that is home to more than 150 luxury resorts and helped them in several initiatives, which includes sending a rapid response team of doctors and essential aid.
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