Government company, State Trading Organization (STO) has stated that the USD loan issued to the company by the International Islamic Trade Finance Corporation (ITFC) will make the management of foreign currency in the Maldives amid the current economic downturn easier.
ITFC issued a USD 15 million loan to the Maldives to assist in procurement of food supplies and medical equipment in response to the COVID-19 pandemic.
STO's Chief Financial Officer Mohamed Mihad said the company's balance sheet is strong and that financial institutions do not hesitate to lend money to the company for that reason. The timely loan issued by ITFC will help to lessen the pressure on the state's cash flow, and foreign currency management will become easier, said STO.
"The inflow [of foreign currency] to the Maldives is limited at this time. We have no tourist arrivals. This in turn limits the revenue generating activities of the state. This loan will make the management of foreign currency easier," said Mihad speaking state TV, PSM.
STO is the main company importing goods into the archipelago during the current crisis. Over 700 percent of medical equipment and other items were imported by STO. The state-owned company also purchased 699,924 bags of staple foods during the last quarter.
