Japan allows delayed loan repayments by Maldives

Male’, Maldives- Japan has allowed Maldives to hold off debt repayments to them after signing an exchange of notes between the 2 countries regarding the G-20 Debt Suspension Initiative.

At a ceremony earlier today at the Ministry of Foreign Affairs, the exchange of notes was signed by the Minister of Foreign Affairs for the Maldives Abdulla Shahid and Japanese Ambassador to the Maldives Keiko Yanai.

This ceremony was attended by senior officials from the Ministry of Foreign Affairs, Ministry of Finance, officials from the Embassy of Japan and Japan International Cooperation Agency (JICA).

A statement by the Ministry of Foreign Afffairs reads that “The signing of the Exchange of Notes will contribute directly to the Maldives’ ongoing economic recovery efforts, and will improve debt transparency and debt management amidst the present economic challenges. “

Todays singing is a follow up of a memorandum of understanding (MoU) signed in September, and the proposed signing of the Deferment Agreement between the Ministry of Finance and Japan International Cooperation Agency (JICA) early next year, that is to formalize the DSSI arrangement between Maldives and Japan.

Ms.Keiko Yanai also paid a courtesy call on President Ibrahim Mohamed Solih earlier today at the President’s Office.

Japan has proven to be a strong ally of Maldives during the tough times Covid-19 has put Maldives in, having have donated MVR 30 million in various forms and mediums. They have also provided a USD 47.5 million loan at an interest rate of 0.01 percent, to be repaid in 15 years.