Kuala lumpur: Malaysia has agreed in principle to support the Maldives' request for a US$100 million financing facility. Prime Minister Datuk Seri Anwar Ibrahim described this as a form of soft loan, which will be facilitated through the monetary authorities of both nations.

According to BERNAMA News Agency, Anwar stated that Bank Negara Malaysia (BNM) and the Maldives Monetary Authority (MMA) are currently working out the terms and mechanisms for this facility. He emphasized that Malaysia has no issue with the Maldives' application, citing the Maldives' repayment history, the cooperation between the two countries, and the necessary government guarantee.

Anwar elaborated that while the loan is essentially a soft loan, it will be executed through BNM and the respective financial authorities of the Maldives. He noted that the terms are under review by both central banks, but Malaysia is confident in the Maldives' repayment ability and the bilateral cooperation that exists.

Investment, Trade and Industry Minister Datuk Johari Abdul Ghani, Human Resources Minister Datuk Seri R. Ramanan, and Malaysian High Commissioner to Sri Lanka and the Maldives Badli Hisham Adam accompanied Anwar during his visit. At a joint press conference with Maldives President Dr Mohamed Muizzu, Anwar mentioned that the Maldivian leader had brought up the facility request and had written about the need for BNM to respond to the MMA's request.

Both countries aim to finalize the mechanism and process swiftly, ensuring the facility is agreed upon promptly, underpinned by trust and friendship. Anwar is currently on a two-day official visit to the Maldives, which included a four-eye meeting and bilateral talks with President Muizzu.