Parliament Examines Urbanco’s MVR 200 Million Loan Withdrawal During Election

Urbanco, a state-owned housing development entity, is under scrutiny for withdrawing two loans totalling MVR 200 million from Maldives Islamic Bank (MIB) under a sovereign guarantee during the September presidential election. The Parliament Public Accounts Committee discussed this on Tuesday. The loans, consisting of MVR 100 million and US$6.6 million (equivalent to MVR 99.8 million), were guaranteed by former President Ibrahim Mohamed Solih on 20 September, between the two election rounds. The loan must be repaid within two years and six months, with a 7% interest rate on the MVR 100 million portion and 7.68% on the US$6.6 million portion. Total repayment for the MVR 100 million is expected to reach MVR 111 million, with full repayment by 2025. Questions have been raised about potential misuse of state resources for campaign purposes, a concern also raised by international election observers. The Finance Ministry has been asked to validate the loan data.

Urbanco, a state-owned housing development entity, is under scrutiny for withdrawing two loans totalling MVR 200 million from Maldives Islamic Bank (MIB) under a sovereign guarantee during the September presidential election. The Parliament Public Accounts Committee discussed this on Tuesday. The loans, consisting of MVR 100 million and US$6.6 million (equivalent to MVR 99.8 million), were guaranteed by former President Ibrahim Mohamed Solih on 20 September, between the two election rounds. The loan must be repaid within two years and six months, with a 7% interest rate on the MVR 100 million portion and 7.68% on the US$6.6 million portion. Total repayment for the MVR 100 million is expected to reach MVR 111 million, with full repayment by 2025. Questions have been raised about potential misuse of state resources for campaign purposes, a concern also raised by international election observers. The Finance Ministry has been asked to validate the loan data.

Urbanco, a state-owned housing development entity, is under scrutiny for withdrawing two loans totalling MVR 200 million from Maldives Islamic Bank (MIB) under a sovereign guarantee during the September presidential election. The Parliament Public Accounts Committee discussed this on Tuesday. The loans, consisting of MVR 100 million and US$6.6 million (equivalent to MVR 99.8 million), were guaranteed by former President Ibrahim Mohamed Solih on 20 September, between the two election rounds. The loan must be repaid within two years and six months, with a 7% interest rate on the MVR 100 million portion and 7.68% on the US$6.6 million portion. Total repayment for the MVR 100 million is expected to reach MVR 111 million, with full repayment by 2025. Questions have been raised about potential misuse of state resources for campaign purposes, a concern also raised by international election observers. The Finance Ministry has been asked to validate the loan data.

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