Maldivian Government Secures A Loan Of USD 25 Million From HSBC Through STO

As per an announcement made by the State Trade Organization Plc (STO) on Sunday, the company has secured a loan of USD 25 million from the Hong Kong and Shanghai Banking Corporation (HSBC) – for which the funds shall be used as financial assistance in the recovery from the COVID-19 pandemic. The company further went on to detail that the funds will be allotted and managed by the Ministry of Finance.

According to the Ministry, the loan will be paid off in a period of three whereas no details are presently made public regarding at what interest rate and such.

Via a tweet, the Managing Director of STO notes that the company has secured a total of USD 62 million from international financial institutions this year to ease the cash flow difficulties of the Ministry during the economic strain brought on by the pandemic.

During last year, the Government has issued a sovereign guarantee for two loans taken out by STO last year; a USD 15 million loan taken out from International Islamic Trade Finance Corporation to procure pharmaceuticals and food products, and a USD 150 million loan taken out from the same bank to procure gas and fuel.