The Government of Japan has granted a concessional loan of USD 47.5 million to the Government of the Maldives with a fixed interest of 0.01% annually for 15 years.
The Ambassador of Japan to the Maldives Keiko Yanai and Minister of Foreign Affairs Abdulla Shahid signed the Exchange of Notes, at a ceremony held at the Ministry of Foreign Affairs. This would be the largest amount of concessional borrowing that Japan has extended to the Maldives in its long history of cooperation and partnership, and reflects the close bilateral relations both countries presently enjoy. The COVID-19 Crisis Response Emergency Support Loan will be utilised by the government in supporting ongoing efforts to combat the pandemic in the country.
Speaking at the ceremony, Foreign Minister Shahid expressed the government’s sincere appreciation to the government and people of Japan and thanked the Japanese government for the continued generosity shown towards the Maldives in its efforts towards economic recovery and stabilisation. He noted Japan has remained a very special friend and steadfast ally, and share a long-standing and time-tested relationship that has spanned for decades.
Japan has previously committed a grant of USD 5.6 million to the Maldives to equip and improve the health services at atolls and regional hospitals across the country. It has also committed USD 1.4 million to the United Nations Development Programme (UNDP) Maldives in support of small and medium enterprises in agri-businesses affected by COVID-19, USD 356,400 for UNICEF Maldives and USD 185,000 for Maldives Red Crescent to assist the government in its efforts to respond to COVID-19.