AFD signs deal with Maldivian Bank

COLOMBO: The French Development Agency (AFD) is a French Government owned institution which operates in the field of social and economic development with France's country partners.

It has the status of a bank and provides subsidised loans to finance development projects in many fields of activity.

It works in 60 countries in the world and usually opens branches in concerned countries. AFD has received a mandate from the French Government to support Sri Lanka in its post-tsunami recovery. It finances mainly infrastructure projects such as roads, water supply, electricity etc.

AFD has opened a branch in Colombo last September. Its representative, Jean-Bernard Maucor, is also in charge of the Maldives.

Jean-Bernard Maucor was in Male last week to sign a loan agreement with the General Manager of the Bank of Maldives. This $5 million loan bears an interest rate of 1 per cent per year.

The money will be used by the Bank of Maldives to refinance small economy activities of the populations of the achipellago hit by the tsunami. Another loan to the Government of Maldives is under preparation to finance destroyed infrastructure.