The government of India on Monday signed a USD 800 million (MVR 12.4 billion) credit line agreement with Maldives.

The agreement was signed by Minister of Finance Ibrahim Ameer and India’s Export Import Bank (EXIM)'s Chief General Manager Sudhattaa Mandal.

The loan carries an interest rate of 1.75 percent, and must be repaid within 15 years with a grace period of five years.

The loan was promised to Maldives during President Ibrahim Mohamed Solih’s state visit to India in December 2018. The Indian government agreed to issue a credit facility of USD 1.4 billion to Maldives.

All loans will be issued through EXIM Bank when the Maldivian government presents India with details of upcoming projects.