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National debt at MVR 73.9 billion: Finance Ministry

Mariyam Malsa
07 September 2020, MVT 15:46
The headquarters of the Ministry of Finance in the capital city of Maldives: the ministry revealed that Maldives' national debt has increased to 73.9 billion. PHOTO: MOHAMED SHARUHAAN/ MIHAARU
Mariyam Malsa
07 September 2020, MVT 15:46

The Ministry of Finance revealed that Maldives' national debt stood at MVR 73.9 billion at the end of June 2020.

As per the ministry's statistics, this constitutes a six percent increase compared to the MVR 69.4 billion debt figure recorded in the first financial quarter of 2020.

Internal debt for the second quarter was recorded at MVR 36.1 billion or 53 percent of GDP, while external debt reached MVR 37.7 billion or 55 percent of GDP.

Overall, Maldives' debt currently represents 108 percent of the country's GDP, which stands at MVR 68.3 billion.

It is surmised that the increase in national debt in the second financial quarter arose after the government procured additional loans in response to the economic downturn caused by the ongoing COVID-19 pandemic and the subsequent fall in national revenue.

According to the finance ministry's statistics, Maldives acquired 12 loans in 2020 including those from the OPEC Fund for International Development (OFID), Islamic Development Bank (IDB), International Development Association (IDA), European Investment Bank (EIB), Asian Development Bank (ADB), Saudi Fund for Development (SFD) and Asian Infrastructure Investment Bank (AIIB).

Earlier in August, Minister of Finance Ibrahim Ameer guaranteed that there was no possibility of Maldives defaulting on its sovereign debts, during a parliamentary committee meeting.

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