Government gauranteed loans rise to MVR 6.6 billion

MP of Villimale' constituency Ahmed Usham | Photo: Majlis

Malé, Maldives – MP of Villimalé Constituency Ahmed Usham has expressed his concern over the government gauranteed loans rising to MVR 6.6 billions within just two years after the administration came into power.

The previous administration had completed 5 years of development projects by taking loans, and completed projects such as the development of Velana International Airport VIA and the ‘Hiyaa’ flats in phase two of Villimalé by taking loans. The previous administration also gave sovereign gaurantee in huge amounts on loans taken by government companies. The opposition back then had expressed many concerns over these loans as well.

MP Usham tweeted regarding this matter, stating that the former administration had government gauranteed loans worth MVR 7.4 billion through out their presidency while noting that this government has acquired MVR 6.6 billion worth of government gauranteed loans within just two years. He raised the question as to what the administration is currently doing after previously attacking the former administration for their loans

The government has currently provided gaurantee on a loan taken by HDC from the Exim Bank of India, as well as a loan worth USD 130 million recently taken from the Export Import Bank of India. The recent loan taken by the government was revealed in a press release from the “Fahi Dhiriulhun Corporation”, a corporation created by the government to develop living arrangements.

India is one of the countries that has been rendering the most help to Maldives, especially in terms of finances where the majority is loans especially taken during the Presidency of Ibrahim Mohamed Solih. The government loans are now totalled at MVR 70 billion.