Japan and the Maldives have signed the agreement of the concessional loan of USD 47.5 million.
The agreement was signed by on behalf of the Japanese government by Japan International Cooperation Agency (JICA). Resident Representative for JICA Maldives Mitsuyoshi Kawasaki signed the agreement on behalf of Japan, while Minister of Finance Ibrahim Ameer signed the agreement on behalf of the Maldives.
Japan has granted a concessional loan of USD 47.5 million to the Maldives with a fixed interest of 0.01% annually for 15 years. JICA stated the objective of the loan is to mitigate the negative social and economic impacts of the COVID-19 pandemic through concessional financing to the government of Maldives. JICA further noted the loan will assist implementation of economic policy aimed at expansion of social welfare for the vulnerable population, thereby contributing to promoting the country’s social and economic stabilization and its development efforts.
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.