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Government repays loans worth MVR 489 million

Shahudha Mohamed
05 June 2020, MVT 11:52
Minister of Finance Ibrahim Ameer signing the agreement for a loan granted by the OPEC Fund For International Development (OFID). PHOTO: HUSSAIN WAHEED/ MIHAARU
Shahudha Mohamed
05 June 2020, MVT 11:52

The Maldivian government revealed having repaid loans worth MVR 489 million this year, till date.

A total of MVR 1.8 billion was allocated in 2020'S annual budget for loan repayment. However, due to the economic recession caused by the ongoing COVID-19 pandemic, it is likely that the policy on loan repayment has now been amended.

According to statistics publicised by the state, MVR 471 million was paid back for loans issued prior to June last year alone.

The state is currently paying back a total of 79 loans, including those issued in 1979 up until 2016, meaning that payment is pending for loans taken in the administrations of former Presidents Maumoon Abdul Gayoom, Mohamed Nasheed, Dr Mohamed Waheed and Abdulla Yameen Abdul Gayoom.

Statistics for the first quarter of 2020 show that Maldives' national debt is currently at MVR 55.7 billion. Considering the financial burden of the COVID-19 crisis, this amount is expected to increase to MVR 70 billion, as opposed to the MVR 57 billion debt estimated for the 2020 budget.

Till now, the state has taken three loans including one from Opec Fund for International Development (OFID) and two loans from the International Development Association (IDA).

Ibrahim Mohamed Solih's administration is holding discussions with various international institutions attempting to secure financial aid for the COVID-19 response.

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