Parliament to deliberate 2012 loan scheme

Parliamentary Finance Committee has approved loans to be borrowed and loan guarantees proposed by the government for 2012 “as a policy”.

Parliament will decide on the matter.

The committee’s report highlights missing information, and asks the government to provide every detail of the loans before borrowing or providing a guarantee, reports Haveeru.

The borrowings summary provided with the 2012 budget indicates the government intends to borrow over US$358 million (Rf5.5 billion) next year.

Foreign loans will be allocated for budget support, construction of Addu Hospital and support for middle-income businesses, fishing and agriculture.

Local loans will go towards the construction of Maldivian Education Fund’s 10-storey building.

The highest loan is valued at US$150 million, which is to be borrowed from China’s Exim Bank.