Maldivian govt. takes USD 25 million loan through STO

State Trading Organization (STO) headquarters.

Maldivian government has taken a USD 25 million loan through State Trading Organization (STO).

STO said on Sunday that STO took the loan from Hongkong and Shanghai Banking Corporation (HSBC), and that it will be used as financial assistance to recover from the COVID-19 pandemic.

“STO has secured a working capital of USD 25 million from HSBC to assist during the pandemic,” announced STO.

STO said the fund will be allotted and managed by the Finance Ministry.

The loan comes after the government issued sovereign guarantee back in January 31 for a USD 25 million loan from HSBC to import pharmaceuticals and staple food products required by Maldives.

The government issued sovereign guarantee for two loans taken out by STO last year; a USD 15 million loan taken out from International Islamic Trade Finance Corporation to procure pharmaceuticals and food products, and a USD 150 million loan taken out from the same bank to procure gas and fuel.