Faster post-COVID-19 recovery of the Maldives’ economy with €20 million loan from the EIB

The European Investment Bank (EIB) has signed a €20 million loan with the Ministry of Finance of the Republic of Maldives as a part of Team Europe action to help sustain the local economy, protect jobs and support SMEs operating in the tourism and industry sectors in the wake of the COVID-19 pandemic.

This is the first COVID-19-related operation of the EU bank in Asia, and a part of its €5.2 billion support package for countries outside the EU, announced on 8 April.

The EIB funds will be available to local SMEs at the Bank of the Maldives. With tourism and related sectors contributing as much as 40% to national GDP, the loan will be crucial for the stabilisation of the local economy. It will also enable the Maldives to recover faster from the economic effects of the pandemic.

EIB Vice-President Andrew McDowell said: “The EIB is happy for the opportunity to support robust economic growth in the Maldives and help the country improve its macroeconomic outlooks in the wake of the COVID-19 pandemic. This loan will support local SMEs, sustain jobs, and have a positive impact on the stability of the local financial market. As such, it will help the Maldives recover faster and I am very glad the EU bank reacted with unprecedented speed to make sure the Maldives can continue to grow and develop.”

In addition to addressing the major social and economic issues, the loan improves access to finance for local SMEs and reinforces the Maldives’ banking sector – all key prerequisites for effective economic recovery.

This is the third operation for the EIB in the Maldives since the beginning of operations there in 1996. It is helping the country reach its United Nations Sustainable Development Goals (SDG), and in particular SDG 3 (Good health and well-being), SDG 8 (Decent work and economic growth) and SDG 11 (Sustainable cities and communities). It also supports the European Union priorities in the region and the outcomes and commitments of the 2019 EU-Maldives dialogue, which paves way to a more sustainable and democratic Maldives.

Original source: EIB
Published on 15 June 2020