The government has obtained two loans worth a total of 562.5 million Saudi Riyals for the airport expansion project and development of the country’s health sector.
Details of the two loans were revealed at a Public Accounts Committee meeting yesterday.
The first loan of SAR 187.5 million was taken for projects planned to strengthen the health sector with assistance from the Saudi Fund for Development.
The interest rate on the loan is 2.5 percent. Interest is expected to be a total of MVR 41.8 million. Servicing the loan is expected to cost a total of MVR 232.6 million. The grace period of the loan is five years.
As the objectives of the loan, the Finance Ministry cited the construction of healthcare facilities and the implementation of measures needed to ensure that healthcare services are provided safely to the public.
The loan will finance the development of 50-bed hospitals on three islands, according to a paper shared with the Public Accounts Committee.
The deadline for repayment of the loan is 2044.
The other loan taken by the government was SAR 375 million from the Saudi Fund for the airport development project.
The interest rate on the loan and other details were not disclosed at the committee meeting.
The new loans obtained by the government come amid speculation about the dire state of the Maldivian economy. At a previous Public Accounts Committee meeting, Deputy Speaker of Parliament Ahmed Nazim raised issues of concern over the state of the economy.
