The government has provided sovereign guarantees for two loans taken by the financially-stricken Maldives Industrial Fisheries Corporation (MIFCO) and Fenaka Corporation.
Information provided to parliament’s public accounts committee by the Finance Ministry shows that MIFCO took a loan of MVR 150 million on June 19 with MVR 160.5 million to be repaid by the end of 2028.
Details of the loan:
- Interest rate - 8.89 percent (MVR 8.33 million)
- Flow rate - 7 percent
- Processing fee - MVR 2.25 million
- Total cost of the loan - MVR 160.5 million
Fenaka Corporation took a loan of MVR 200 million from the Maldives Islamic Bank (MIB) on June 20 at a profit rate of 3.5 percent. Along with additional fees, a total of MVR 218 million has to be repaid. It is expected to be repaid by 2026.
Details of the loan:
- Profit rate - 3.5 percent
- Processing fee - MVR 5.66 million
- Effective interest rate - 5.1 percent
- Total cost of the loan - MVR 218.3 million
The government issued sovereign guarantees last year for five loans taken by state-owned companies. The loans amounted to MVR 7.4 billion.
