As budget support for managing government expenses, a USD 50 million (MVR 771 million) loan has been taken through STO from an American company.
As budget support for managing government expenses, a USD 50 million (MVR 771 million) loan has been taken through STO from an American company.
As seen in the statistics shared by the Finance Ministry, the loan was taken on November 8, 2024 from USA's Cargill Financial Service International (CFSI).
The government has given loan guarantee for this loan taken by STO.
The government has also given guarantee to the USD 400 million currency swap taken from Reserve Bank of India (RIB) last year. This is the first time that guarantee has been given to a currency swap facility.
A USD 50 million dollar loan was also taken last year via MACL to repay part of the bond sold to State Bank of India.
Last year's budget deficit is at MVR 15 billion. The government generally sells T-bills to source funding needed for budget deficits. Last year, too, a large amount was sourced from the domestic market through selling T-bills.
This year, MVR 12 billion is to be sourced for budget financing. MVR 6.6 billion of this will be sought through foreign banks. If these funds are not arranged, there will be additional pressure on the reserves, MMA highlighted in their budget advice last year.
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