OPEC Fund pledges USD 20 million loan to Maldives

The OPEC Fund for International Development has pledged USD 20 million in emergency finance to support Maldives mitigate the economic impact of the COVID-19 pandemic.

The OPEC Fund said on Thursday that the emergency loan would support Maldives’ economic recovery plan, which includes a package of economic relief measures aimed at mitigating the socioeconomic impact of the COVID-19 pandemic, especially in light of the anticipated downturn in tourism.

The loan was approved following discussions between the Maldivian government and OPEC Fund.

OPEC Fund has announced a USD 390 million package to support developing countries combatting the pandemic.

The loan follows pledges of emergency finance by European Union, World Bank and Asian Development Bank.

EU has pledged 3 million Euros (MVR 51 million), World Bank has pledged USD 17.3 million, and ADB has pledged USD 600,000.

Maldives is also engaged in negotiations to secure USD 50 million from International Finance Corporation (IFC) and USD 30 million from International Monetary Fund (IMF).

29 have tested positive for COVID-19 in Maldives, including nine from the capital Male’ City within the last three days, confirming a community spread. Health experts now project a steep increase in new cases within the next two weeks, and warn that failure to comply with virus measures will overwhelm the health system.