KUWAIT CITY, July 30: The Kuwait Fund for Arab Economic Development (KFAED) signed a loan agreement with the Republic of Maldives on Monday, amounting to three million Kuwaiti dinars (approximately USD 9.8 million), to help finance the small islands hospitals project there.

According to a statement by the Fund to the Kuwait News Agency (KUNA), the project aims to enhance economic and social development in the Maldives by providing essential health services and improving their quality and efficiency. It is expected to lower the cost of transporting patients from small islands and resorts to larger cities for necessary medical care.

The project is anticipated to contribute to several sustainable development goals, including poverty eradication, promoting good health and well-being, and fostering partnerships to achieve these goals. The loan has a 24-year term, which includes a four-year grace period.

The loan carries an annual interest rate of 1 percent, with an additional fee of 0.5 percent per year to cover the administrative and service costs associated with the loan agreement.

The agreement was signed by Waleed Al-Bahar, Acting Director General of the Kuwait Fund for Arab Economic Development, and Mohammed Shafiq, the Minister of Finance of the Republic of Maldives.

It is notable that the Fund has previously provided 20 loans to the Maldives across various sectors, amounting to approximately 58.1 million dinars (about 189.9 million dollars), along with nine grants and technical assistance, totaling around 1.09 million dinars (about 3.5 million dollars).

The Kuwait Fund for Arab Economic Development is recognized as a development instrument that operates entirely on its own resources, providing loans and development assistance with favorable terms to aid developing countries in financing their development projects.