Japan provides Maldives with USD 47m loan

The government of Japan has provided the Maldives with a loan of USD 47.5 million. 

In a special ceremony held today, the loan agreement was announced by Maldivian Foreign Minister Abdulla Shahid. Japanese Ambassador to the Maldives Keiko Yanai took part in the ceremony on behalf of the Japanese government. 

Foreign Minister Shahid said that the loan agreement was the biggest aid by Japan to the Maldives so far. A 15-year period is granted as the repayment period which is at an interest rate of 0.01 percent. 

“Based on the interest rate and the repayment period, it is a massive aid.” Said Minister Shahid. 

He also noted that Japan had provided the Maldives with a lot of support in terms of infrastructure development. Minister Shahid noted that the Maldives was faced with a lot of challenges economically due to the COVID-19 pandemic, making the assistance by Japan all the more noteworthy. 

Ambassador Yanai said that the loan was an emergency support loan to strengthen the Maldivian economy and that the two nations would continue to have prosperous and close relations in the future.