Exim Bank extends $400 mn soft loan to Maldives for connectivity project

India has extended a $400 million (about Rs 2,932 crore) soft loan to Maldives through the Exim Bank to finance a connectivity project in the nation of islands, a statement said on Monday

India has extended a USD 400 million (about Rs 2,932 crore) soft loan to Maldives through the Exim Bank to finance a connectivity project in the nation of islands, a statement said on Monday.

The Export-Import Bank of India (Exim Bank) on behalf of the Government of India has extended a Line of Credit (LoC) of USD 400 million for undertaking Greater Male's connectivity project in Maldives, the bank said.

The loan agreement was inked in Male on Monday between Exim Bank General Manager Nirmit Ved and Maldives' Finance Minister Ibrahim Ameer.

With the signing of the above agreement, Exim Bank has till date extended three LoCs worth a cumulative USD 1.2 billion to Maldives, on behalf of India.

Exim Bank said the soft loans to Maldives have funded connectivity, water, sewerage projects, Addu Development Project, an international cricket stadium, Gulhifalhu port, Hanimaadhoo airport and road construction work.

Exim Bank has now in place 266 LoCs, covering 62 countries in Africa, Asia, Latin America and the Commonwealth of Independent States (CIS), with credit commitments of around USD 26.40 billion available for financing exports from India.

Besides promoting India's exports, Exim Bank's LoCs enable demonstration of Indian expertise and project execution capabilities in emerging markets, it said.

LoCs or soft loans are concessional loans that are offered at cheap rates.