Government requests parliament to extend STELCO MVR 50 loan guarantee

Government has requested parliament for approval to extend the duration of the government guarantee for the MVR 50 million overdraft facility granted by the Bank of Maldives (BML) to the State Electric Company Ltd (STELCO).

The loan guarantee was first granted by parliament in September 2009 and is set to expire this year. The request was made through a letter sent by the President Dr. Mohamed Waheed Hassan Manik to the Speaker of the Parliament Abdulla Shahid.

The letter from the President asked the parliament for approval to extend the guarantee until the 30th of March 2014. The letter was accompanied by the details of the overdraft facility, provided by the Ministry of Finance.

Article 5 of the Public Finance Act requires any borrowing of finances or guarantees by the State to be submitted by the Minister of Finances to the President, who is required to seek the approval from the Parliament.

The Parliament has now forwarded the motion to the Public Accounts Committee for review.