OPEC Fund grants $10m aid to Bank of Maldives to support tourism revival

Maldives is a popular destination for tourists in the Gulf. (Shutterstock)

• The loan will be used for lending to small- and medium-sized enterprises (SMEs) in the tourism and other related sectors

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.
“The 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,” Tim Sawyer, Bank of Maldives chief, said.
He said the loan will further drive Maldives’ 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’s private sector.
“Our loan will help to revive businesses and sustain jobs that are critical for the stability of the local economy,” he said.
The loan is part of a syndication led by the IFC, a member of the World Bank Group.
“Helping Maldives revive tourism is critical for the resilient recovery of the economy hampered by COVID-19,” 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.