Ministry of Finance has reveled on Thursday that the sovereign guarantee of USD 127.5 Million (MVR), which was granted to Ahmed Siyam Holding Pvt Ltd (ASH) has been paid back in full to the Export-Import Bank of China (EXIM Bank).
Loan issued to the parliamentary representative for Dhaalu Atoll Meedhoo constituency Ahmed Siyam (Sun Siyam) via a sovereign guarantee provided by the previous administration.
According to the ministry, ASH deposited the funds this Thursday following a payback notice by EXIM Bank after Sun Siyam had failed to settle USD 10 million of the loan. A payback notice was issued to the Maldives state to settle off the outstanding amount as the state was provided as the guarantor for the debt.
In case the following didn’t went through the state failed or refused to pay back the debt it would result in a sovereign default which may devalue the Maldivian currency that would effect international trade. This could also effect the countries global standing and credit rating.
As the Maldivian economy is keeps on falling the country is expect to have many issue in payback its debts.