Agreement signed with India for $25 million as budget support

An agreement has been signed today with the Indian government, for $25 million out of the $100 million promised by the Indian government to Maldives, to be used as budget support.

The agreement was signed by Foreign Minister Abdullah Jihad on behalf of the Maldivian government, and Indian High Commissioner to the Maldives D.M. Mulay on behalf of the Indian government, at a ceremony held at the Indian High Commission today.

India agreed to provide $100 million to Maldives during Indian Prime Minister Manmohan Singh’s visit to the Maldives for the SAARC Summit last year.

India had already given $50 million out of the promised $100 million.

Finance Minister Jihad told Sun Online after the signing ceremony today that the Indian High Commission had assured that the money, as per the agreement signed today, will be facilitated in about one week.

“We will use this money to make up for the current deficit, as budget support,” Finance Minister Jihad said.

The $100 million provided by India is on loan to Maldives, to be repaid within 10 years at an interest rate of 1.5 percent. Fifty percent of this money has been used to finance T-bills.