Saudi Arabia pledges US$150m ‘bailout loan’ to Maldives
The US$150m loan will be used to service the Maldives’ foreign debt. The opposition claims the move is a signal that the Maldives is heading towards a balance of payment crisis.
07 Oct 2016, 9:00 AM
Saudi Arabia has agreed to lend the Maldives US$150million to make payments on loans taken out for an unprecedented infrastructure scale-up, including a project to develop the country’s main airport
The pledge was made by Saudi King Salman during President Abulla Yameen’s four-day visit to the kingdom earlier in the week, Fisheries Minister Dr Mohamed Shainee said on Thursday.
“The Maldives is witnessing extraordinary development, and the expenses on these projects are also unparalleled. Repaying these foreign currency [loans] is important for the government,” Shainee said. “So to help with balance of payments, the Saudi government has pledged US$150million in aid to the Maldives.”
The move has drawn criticism, with the opposition claiming the Maldives appears to be heading towards a balance of payment crisis.
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