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We have not asked for funds under standby credit facility: Male

Last Updated: Friday, December 7, 2012 - 20:59

Male/New Delhi: Amid reports that India has stopped funds to Maldives over unilateral decision to terminate GMR contract, Maldivian government Friday said it has so far not asked for further release of funds under standby credit facility of USD 100 million extended by New Delhi.

"We have not asked for further release of funds under the standby credit facility so far," a top official in Maldivian President's office told PTI.

"We had a 50 million dollar bond matured earlier this week and it has been paid up. The SBI did not roll over this bond for another period. It was settled in full," he said.

India had inked an agreement in 2011 under which it extended a Standby Credit Facility (SCF) of USD 100 million to help stabilise Maldivian fiscal position.

While USD 50 million was released immediately after the inking of the pact, USD 20 million was given after the new government took over in February this year.

Remaining USD 50 million is with India as no demand for the release of the same has been made by Maldives. Standby Credit Facility is released based on the requirements and demand by the other party.

However, given the current status of bilateral ties, which are at an all time low, such a demand by the neighbouring country will be "reviewed very carefully", official sources in New Delhi said.

India has already conveyed to Maldives that the unilateral decision to terminate contract of GMR, largest Indian investment in that country, will have serious consequences on the bilateral ties as it is considering a "series of options", including slowing down cooperative programmes, if legal course is not followed.

Meanwhile, External Affairs Minister Salman Khurshid Friday said, "If they have to take a decision in the interest of their society and country and if that decision is taken properly as per laws there, what objections can anyone have there. We would want that whatever is the decision, it should not put any question marks on our friendly relations."

He also said,"If any quarters there (in Maldives) want that our relations should be harmed, then they should be controlled. I think Maldives and its people know this thing properly and I am sure that they will do the same thing."


First Published: Friday, December 7, 2012 - 20:59
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