Parliament member for Hulhudhoo constituency Ilyas Labeeb had submitted a motion on Thursday calling to restructure Maldives’ state debt.
The motion submitted by ruling party Maldives Democratic Party (MDP) Ilyas states that a large part of the sovereign guarantee, bonds sold and loans taken by the government need to be repaid by this year and in 2023.
The total debt in this year's budget is estimated at MVR 91.8 million, which is 104.4 percent of the gross domestic product. The figure is estimated to reach MVR 102.9 million, which is 117.7 percent of the gross domestic product.
The motion said that it will be difficult to maintain the debt within the aforementioned standards with the current income the state generates. It also said that additional loans were required to resist the expenses and repay the loans, and that debt restructuring was important.
Ilyas submitted the motion after President Ibrahim Mohamed Solih assured that there was no fear of the Maldives facing a situation in which the state reserve would run out of debt.
The President also said that MVR 9.9 billion was required for the deficit in the budget, out of which MVR 7.9 billion will be allocated. He said they were working on finding funds for the remaining MVR 2 billion.
After the President had concluded his press conference, former President and Parliament Speaker Mohamed Nasheed said this was the time to think about improving foreign currency reserves and the security of Maldivians.
Sign In
