Maldives secures USD 150 million loan from Saudi

The Maldivian Government has recently announced a new financial development, securing an additional loan amounting to a substantial USD 150 million. The Maldivian Finance Ministry has officially confirmed this significant move, with USD 100 million of the loan earmarked for the ongoing expansion of Velana International Airport. An additional USD 50 million has been allocated to bolster the nation's healthcare sector.

This particular loan agreement was forged in collaboration with the Saudi Government, marking a continuation of Saudi support for the airport expansion project. The origins of this project can be traced back to 2016 when the Saudi Government previously provided the Maldives with a USD 100 million loan for the same venture.

The responsibility for executing this ambitious project was entrusted to the Saudi Binladin Group on November 1, 2016. Despite substantial progress achieved by 2023, it remains a work in progress, now spanning seven years since the initial agreement was inked.

While the question of when the expansion project will reach completion lingers unanswered, the acquisition of an additional USD 100 million in loans imposes another financial commitment on the Maldivian government. This situation adds to the country's pre-existing challenge of managing a considerable debt burden owed to various nations. Consequently, it raises concerns about the economic implications and the ability to meet these financial obligations in the future.