DUBAI: The OPEC Fund for International Development (OFID) has signed a $10 million private sector loan agreement with the Bank of Maldives, state news agency WAM reported.
The loan will be used for lending to small- and medium-sized enterprises (SMEs) in the tourism and other related sectors, as the popular island destination took a hit from the pandemic.
鈥淭he funding comes at an opportune time as we reinforce resources for our COVID-19 response for the tourism and business sectors severely affected by the pandemic,鈥� Tim Sawyer, Bank of Maldives chief, said.
He said the loan will further drive Maldives鈥� path to recovery, especially as countries start to slowly reopen their borders for air travel.
OFID Director-General Abdhulhamid Al-Khalifa said the fund has built a strong relationship with Maldives, particularly in the country鈥檚 private sector.
鈥淥ur loan will help to revive businesses and sustain jobs that are critical for the stability of the local economy,鈥� he said.
The loan is part of a syndication led by the IFC, a member of the World Bank Group.
鈥淗elping Maldives revive tourism is critical for the resilient recovery of the economy hampered by COVID-19,鈥� said Rosy Khanna, regional director for financial institutions group for IFC Asia and the Pacific.
Maldives is a popular destination for tourists in the Gulf.