Loan agreement of USD 47.5m with Japan

An agreement for the arranged loan by the Japanese government to the Maldives worth USD 47.5 million has been signed.

The agreement was signed at a ceremony at the Finance Ministry today by Minister Ibrahim Ameer and the Residence Representative of JICA Maldives. 

A 15-year period is granted as the repayment period which is provided at an interest rate of 0.01 percent. The loan was an emergency support loan to strengthen the Maldivian economy. 

Speaking in the ceremony, Finance Minister Ameer said that Japan remained in assisting the Maldives in every challenge faced since establishing diplomatic relations in 1976. 

He noted the assistance by Japan after the Tsunami incident in 2004. 

"Through technical means, and human resources, Japan has been providing assistance in development. Environmental protection and, sustainable fisheries and communication area are some of the areas where Japan provided assistance." said the Minister.

The Minister said that all nations in the world were affected economically and socially due to COVID-19.

"Since the Maldives was a nation dependent on tourism, the industry has been affected a lot by the pandemic. State income could go down by 51 percent," said Minister Shahid. 

The state budget has been revised by 17 to reduce the impact of the virus on the economy said the Minister. The assistance by Japan would assist in alleviating the impact on the nation. 

The resident representative also noted that the government of Japan would provide technical assistance in addition to the loan.