Ministry of Finance has revealed Ahmed Siyam Holdings Private Limited (ASH) has been paying the loan taken from the Export-Import Bank of China under a sovereign guarantee from the government of the Maldives.
ASH, owned by Parliamentarian Ahmed Siyam, was issued a sovereign guarantee from the previous administration on December 14, 2017. The company received a loan of USD 127.5 million from the Export-Import Bank of China under the sovereign guarantee.
In a statement, the finance ministry revealed the sovereign guarantee was granted in accordance with the regulations and procedures for such transactions. The statement also read the company had settled all payments due until January 2020.
However, the company received a warning from the Export-Import Bank of China for failing to settle the principal and interest due by July 21, 2020. The bank warned the state to settle the amount as the guarantor for the loan. The payments have since been settled by the company via an escrow account.
The finance ministry stated the sovereign guarantee issued to develop Sun Siyam Iru Fushi was the first of its kind as no private party had received a sovereign guarantee from the state in the past. The ministry stated the current administration only provides sovereign guarantees for state owned enterprises which run mega projects in the country. The ministry said the priority of the administration is to ensure the state avoids a sovereign default.