Former Finance Minister Ibrahim Ameer has alleged that the government plans to take out a loan from Vitol Group at an interest rate of more than 14 percent.
Vitol Group is contracted to import oil sold by the State Trading Organization (STO) and is collaborating with STO to provide bunkering service in the north of the Maldives.
Speaking at the opposition Maldivian Democratic Party (MDP)'s Havaru Beru panel discussion, Ameer said the government plans to take the loan at a 14 percent interest rate for a three-year period.
"I am also receiving information even today, that the loan is being taken at an interest rate of more than 14 percent, very short term, for about three years," Ameer stated.
He said there is a possibility of having a budget deficit of MVR 13 billion by the end of the year if the government continues to borrow.
"So if these people who said they would not borrow and run the budget from the revenue continue like this, there will be an estimated deficit of MVR 13 billion by the end of the year," Ameer said.
Adhadhu understands that the government wants a USD 70 million (MVR 1 billion) loan from Vitol as the country's financial situation deteriorates.
Vitol wants to issue the loan with a three-year repayment period. But the government has proposed to extend the repayment period.
