Haven

Minister of Finance Abdullah Jihad has said that the budget support loan of $25 million promised by the Indian government has still not been received, resulting in difficulties in settling government expenses.

India’s coalition cabinet decided last month to give $25 million as a loan, out of the $50 million promised as trade credit to Maldives. Approval has also been granted by Maldivian parliament to Finance Ministry to obtain this loan.

Jihad told Sun Online today that the loan has still not been received, and when asked why, he replied that the Indian High Commission was “not even answering the phone today.”

“We are in discussion with the Indian High Commission to obtain this loan as soon as possible,” he said.

He said that government cash flow will be insufficient unless this loan is received.

“Given the current situation we will face serious difficulties,” he said.

The Indian government had agreed in 2011 to extend $100 million to Maldives, of which $25 million has been released. An agreement was signed between the governments of Maldives and India on providing additional $25 million.

The $100 million loan should be repaid to the Indian government in 10 years with an annual interest rate of 1.5 percent.