Ministry of Finance revealed that MVR 4.5 billion was added to the national debt during the first six months of 2019.
According to the figures in the quarterly debt bulletin revealed by the Ministry, the largest increment within these six months was the amount of guarantors granted by the government. Guarantors saw a 14 percent increase in the first half of 2019.
While international debt increased by five percent, internal debts increased by seven percent.
According to the statistics, international debt increased after the government received foreign loans for the development of Velana International Airport.
Meanwhile, internal debt spiked due to sales of treasury bills (T-Bills). The government sold USD 100 million to State Bank of India (SBI) in T-Bills, according to the finance ministry.
As per the government, the money from the T-bill sales was agreed to be given to India as free aid.
The agreement with the Indian government mandates an additional USD 50 million to be sold as T-bills to SBI.
Compared to the figures from the first half of 2018, this year saw a five percent increase in national debt.
To date, the national debt is at MVR 49 billion, which is 61.3 percent in terms of GDP. With the inclusion of loan guarantors, the figure increases to 64.9 percent.
In international standards, as a developing country, it is ideal to maintain national debt at 60 percent.
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