Exim Bank of India holds MVR 15.7 Billion in undisbursed loans to Maldives

21 May 2024 | 14:15
Thilamale' bridge project (Photo/Ministry of construction and infrastructure)

The latest biquarterly debt bulletin from the Maldives' Finance Ministry reveals that the Export-Import Bank of India (Exim Bank) holds a significant portion of the country’s undisbursed loan commitments.

According to the report, Exim Bank of India accounts for 64.9% of the Committed Undisbursed Balance (CUB) of BCG External Loans, amounting to MVR 15,71 billion out of a total of MVR 24 billion.

In addition to Exim Bank of India, the Saudi Fund for Development holds 6.6% of the CUB, equating to MVR 1.6 billion, while the International Development Bank accounts for 4.9%, which is MVR 1.2 billion.

As of the end of the previous year, the Maldivian government's outstanding debt to the Exim Bank of India was MVR 6.2 billion.

The disbursement of these loans will occur incrementally as various projects progress, meaning future repayments to Exim Bank are expected to increase.

The debt data from the Finance Ministry indicates that the Maldives has secured six loans from Exim Bank of India over the past five years.

The largest loan, amounting to USD 400 million, was procured for the construction of the Villimalé-Gulhifalhu link project.

As projects continue to advance, the reliance on these undisbursed funds will likely shape the future financial landscape of the Maldives.