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The state cannot get loans – But GMR can get loans with guarantee from the state – The state is poor than GMR ?

The state cannot get loans – But GMR can get loans with guarantee from the state – The state is poor than GMR ?


Estimated time to read the article : 2 min, 6 secs

When MDP administration gave away Ibrahim Nasir International Airport to GMR, they said that the government does not have enough money and that Maldivians are not capable enough to develop the airport.

However, then what we saw was MDP government giving sovereign guarantee to GMR to get a loan. What does this show ?

This shows that the banks trust the state of Maldives. They gave loan with a guarantee from the Maldivian state. However, they did not trust the MDP government. MDP knew that, no bank will trust if they go on their own. There is no reason why wouldn’t that happen. We can see how they struggled to get a loan of 25 million dollars and how they enslaved Maldivians financially by doing that.

They are saying that they did not take loans because they did not want to put the state in debt. But at the same time they gave a sovereign guarantee to a foreign company to take a loan. This does not make sense at all. Today they are saying that sovereign guarantee will also put the state at debt. Did this change with the change in administration?

It is not clear what GMR was planning to develop. For sure, they had no plans to develop a new runway. Even back then the airport needed a new runway. The airport which MDP sold for just 79 million dollars is now being developed under a project worth 1 billion dollars and it is 100 percent Maldivian !