The latest loan taken to cover government expenditures was a USD 100 million (MVR 1.5 billion) loan from a private US lender, Finance Ministry's debt data has shown.
According to the published statistics, the government signed an agreement in March to borrow USD 100 million from a private creditor [debt financing agency] called Cargill Financial Service International (CFSIT).
A Finance Ministry official said CFSIT Inc. is a US-based multinational creditor. However, the finance official did not disclose the repayment period, interest rate, or other details of the loan.
Although the official said the loan terms were not disclosed, the government shared all this information regarding the loan with the Parliament before taking the loan. The information has been obtained by AVAS.
According to the information, the government borrowed USD 100 million in budget support from CFSIT Inc. under four agreements, with USD 25 million paid under each agreement. The agreements were signed on behalf of the government on March 24 this year. The information was shared with the Parliament on 17 May.
The loan is repayable over a three-year period. The interest rate on the loan is 7.15 percent, and USD 1.5 million would be spent on SOFR. With an additional arrangement fee of 1.5 percent, the total interest on the loan is expected to be USD 24.5 million. The loan is expected to run at USD 126 million when it is serviced or repaid. The loan is expected to be fully repaid on March 24, 2025.
CFSIT loan summarized
The loan amount is USD 100 million
Payable in three years
Interest rate 7.15 percent
Loan arrangement fee 1.5 percent
Full repayment amount is expected to be USD 126 million
The loan will be fully repaid in 2025
According to Finance Ministry's data, the government has borrowed more than MVR 37 billion in the past four years.
