An Indian newspaper has reported that Axis Bank, who loaned a sum of $350 million (5.4 billion rufiyaa) to GMR for the investment of Ibrahim Nasir International Airport has sent a notice to the government of Maldives demanding repayment for the loan.
Referring to an official from Axis Bank, the Economic Times (EC) reported that the funds were disbursed based on government guarantees and that the notice was sent because the Maldivian government has decided to terminate the GMR contract.
"The bank has hired a law firm in Singapore. The bank had disbursed the funds based on government guarantees. Now, if the Maldives government cancels the contract, the government should stand by it," said the official.
The EC also states that GMR has spent $230 million on the investment so far and that the net earnings per quarter from the airport are about $3 million. If the loan is not repaid, the bank will suffer losses close to $160 million, reports EC.