The Ministry of Finance, on Thursday, revealed that efforts were underway to secure USD 233 million from foreign financial institutions to offset the economic repercussions of the COVID-19 pandemic.
According to the ministry, the government has already finalised financial assistance from the following international bodies.
- World Bank: USD 30 million
- Asian Development Bank (ADB): USD 27 million
- Asian Infrastructure Investment Bank (AIIB): USD 5 million
- International Monetary Fund (IMF): USD 30 million
- OPEC Fund for International Development (OFID): USD 20 million
- International Finance Corporation (IFC): USD 50 million
- SAARC Development Fund: USD 1.5 million
- World Health Organisation (WHO): USD 400,000
- United Nations Children's Fund (UNICEF): 180,000
- Hong Kong and Shanghai Banking Corporation (HSBC): USD 25 million
The government is also working to acquire financial assistance and free aid from countries with which Maldives maintains bilateral ties.
Maldives' economy is heavily reliant on its tourism sector. As over 70 percent of the country’s GDP is attributed to revenue generated by the tourism industry, the economy continues to face severe repercussions due to travel restrictions imposed over the COVID-19 outbreak. It is estimated that the country will face a shortfall of approximately USD 450 million (MVR 6.9 billion) in foreign currency.
In a bid to counteract the financial impact of the COVID-19 pandemic on the local economy, the government has introduced a financial stimulus package with MVR 2.5 billion intended to prevent the closing down of local businesses and the loss of jobs.
Earlier, the government vowed to reduce state spending by MVR 1 billion. In this regard, the government had slashed the salaries of all political appointees and heads of state-owned enterprises (SOEs) by 20 percent. The Parliament followed suit, approving a 20 percent cut on their members’ salaries as well.
As of now, Maldives records 110 positive cases, two probable and 94 active cases of COVID-19, with a total of 16 recoveries.
The World Health Organization (WHO) has classified the spread of COVID-19 as a global pandemic. The novel coronavirus has infected over 2.7 million people and claimed over 191,600 lives around the world. However, out of those infected, more than 749,800 people have recovered.
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