An LoC was signed between EXIM Bank general manager Nirmit Ved and Government of Republic of Maldives Minister of Finance Ibrahim Ameer. Credit: EXIMBANK.

Export-Import Bank of India (EXIM Bank), on behalf of the Government of India, has extended a soft loan of $400m to the Maldives for the Greater Malé Connectivity Project.

The Greater Malé Connectivity Project (GMCP) is aimed at establishing new connections between Malé, the capital city of the Maldives, and three neighbouring islands.

It is expected to improve the economic activity between the four islands and create new employment opportunities in the region.

The agreement was signed by the EXIM Bank general manager Nirmit Ved and Government of Republic of Maldives Minister of Finance Ibrahim Ameer.

With the latest agreement, EXIM Bank has extended three Lines of Credit (LoC) worth a cumulative $1.2bn to the Maldives.

In addition to the Greater Malé Connectivity Project, the LoCs provided by EXIM Bank to the Maldives covered various projects such as water and sewerage, Addu development, international cricket stadium project, the Gulhifalhu port project, Hanimaadhoo airport project and road construction projects.

EXIM Bank noted that with the latest LoC to the Maldives, it now has 266 LoCs covering 62 countries in Africa, Asia, Latin America and the CIS.

It added that nearly $26.40bn is available for financing exports from India.

This August, the Government of India reportedly committed to provide $500m to fund a bridge project in the Maldives.

Indian Foreign Minister Subrahmanyam Jaishankar said that the bridge infrastructure will be one of the largest infrastructures in the country and will connect Malé with the islands of Villingili, Gulhifahu and Thilafushi.