Maldives government on Thursday announced a decision to convert the debt laden and mismanaged state fisheries company into a subsidiary of the main trading company.
The ministerial economic council told reporters that the decision has been long overdue as the Maldives Industrial Fisheries Company (MIFCO) had amassed a staggering MVR300 million debt.
Finance minister Ahmed Munawwar said the primary reason behind the decision to convert MIFCO into a subsidiary of one of the most profitable state firms State Trading Organisation (STO) was the millions owed to banks and local fisherman.
"MIFCO's debt had been climbing. This is an issue the finance ministry has expressed grave concerns over," Munawwar said.
The council said the move would mean a chance to clear the debt and a new beginning for the company which was established in 1993.