Maldives’ pay out to GMR to include US$170million bank debt
The Maldives’ pay out to Indian infrastructure giant GMR is set to increase by hundreds of millions of dollars after a tribunal ruled Tuesday that the claim should include the company’s debt to a Singaporean bank.
25 Feb 2016, 9:00 AM
The Maldives’ pay out to Indian infrastructure giant GMR is set to increase by hundreds of millions of dollars after a tribunal ruled Tuesday that the claim should include the company’s debt to a Singaporean bank.
The loan from Axis Bank amounts to at least US$170 million and adds on to the US$803million claimed by GMR over the government’s abrupt termination of the 25-year concession agreement to upgrade and manage the Maldives’ main airport.
The tribunal, which had ruled that the government wrongfully terminated the contract, is now examining the GMR’s claim and will complete its assessment by October, according to a letter from the company to the Indian National Stock Exchange.
GMR had put in a claim for the loaned sum when a separate tribunal, also based in Singapore, ruled against Axis Bank last year. The bank had first sought repayment of the loan from the government and not GMR.
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