STO secures loan of USD 25 million from HSBC

Managing Director of State Trading Organisation (STO) Hussain Amr | Photo: PSM News

Malé, Maldives – STO has secured a loan of USD 25 million from Hongkong and Shanghai Banking Corporation through sovereign guarantee.

The sovereign guarantee was given on 31 January 2021 and the loan was secured in February 2021. The Maldives Ministry of Finance will manage the loan to be paid off in three years. The government has not released the interest rate and other details.

Hussain Amr, Managing Director of STO states that the company has secured USD 62 million for the Finance Ministry from international institutions.

Additionally, the government issued sovereign guarantee to STO last year as well for a loan to procure pharmaceuticals and food staples worth USD 15 million with another USD 150 million loan taken from the bank for fuel and gas.

Statistics released by Ministry of Finance reveal that USD 519.8 million was secured as loans as of September 2020.