President Abdulla Yameen Abdul Gayoom has asked the parliament to review and amend the allocation of funds from the MVR 2.5 billion (982,500,000 Yuan) loan withdrawn from China’s Exim Bank.
The MVR 2.5 billion loan was taken by former president Mohamed Nasheed in 2011 for the construction of 1,500 housing units in four southern atolls.
In a letter to the parliament today, President Yameen said the government would like to re-allocate a sum to construct 704 housing units in Hulhumale’.
The previous parliament, in December 2013, rejected a request by President Yameen to review the fund allocations for the Exim Bank loan.
President stressed in his letter today that the government should be free to re-allocate funds as required and that the current restrictions hinder the development process.
He also said that that government, through a needs assessment, has determined the housing needs in the southern most atolls and that it would like to allocate the some housing units to Hulhumale’.
The loan from China’s Exim Bank must be repaid within 20 years. From the time of full disbursement of the loan, the government will have to pay 17.74 million Yuan ($2.3 million or MVR35.5 million) yearly as interest during the grace period. The government should have paid $183.14 million (MVR2.8 billion) by 2033, the end of the loan period.
The request by President Yameen was forwarded to the parliament Public Accounts Committee for review today.