AIIB approves USD 7.3 million loan to the Maldives

Asian Infrastructure Investment Bank (AIIB) has approved a loan of USD 7.3 million to the Maldives.

In a statement, AIIB stated this is the first ever financing project to the Maldives to strengthen the country's health response to COVID-19 by boosting the testing capacity and increasing the number of personal protective equipment (PPE). According to the bank, the loan will also enable the government to scale up efforts to provide protection and care to at-risk populations and the elderly.

Vice President of AIIB D.J. Pandian stated the bank is offering project financing to the Maldives to navigate the impact of the global pandemic and revive the economy by ensuring the government has necessary resources and capacity. The project to the Maldives was approved under a new Special Fund Window in efforts to mitigate the impact of COVID-19. AIIB stated the facility will reduce the financial burden on the country as the financing is provided at a small interest rate for member countries of the World Banks's International Development Association.

As of the end of June 2020, AIIB has approved a total of 13 projects worth USD 5.5 billion for 11 member countries under the COVID-19 Crisis Recovery Facility to mitigate the impact of the global pandemic.