Govt guarantees MVR 200 million loan for HDC

The government of Maldives has given a guarantee for a MVR 200 million loan taken out from Habib Bank by Housing Development Corporation (HDC).

While details of the loan were revealed during the Parliament's Public Accounts Committee meeting today, local reports reveal the state-owned enterprise took out the loan to raise 25 percent of the advance payment required to proceed with the second phase of the Thilafushi project.

HDC specifically plans to reclaim a 150 hectare land from the island, and protect the beach in that area. The reclaimed land will be divided into six zones where industrial work will be carried out, including the establishment of a liquified natural gas plant.

Last year HDC took out two MVR 200 million loans from the Maldives Islamic Bank (MIB) as well; both also on government guarantee.

Apart from HDC, the government has also given guarantees for two loans taken out by Maldives Fund Management Corporation (MFMC). Both loans were MVR 230 million each, and were used for a submarine cable project.

According to the Finance Ministry, the government has borrowed USD 200 million (MVR 3 billion) so far this year, while it is estimated that the country's debt will reach MVR 129 billion this year.