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State pays off loans worth MVR 597 million

Raif Amyl Jalyl
24 July 2019, MVT 09:43
Minister of Finance Ibrahim Ameer issuing a statement to press on December 3, 2018. PHOTO: NISHAN ALI/MIHAARU.
Raif Amyl Jalyl
24 July 2019, MVT 09:43

The government paid off loans worth MVR 597 million accumulated over the past six months.

Statistics publicised by the Ministry of Finance reveal that the administration is required to spend MVR 2.8 billion on loan repayment in 2019. Presently, the state has covered 20 percent of the sum.

In 2018, the government utilized MVR 2.1 billion to repay loans.

State debt currently stands at MVR 49 billion, constituting 70 percent of the gross domestic product (GDP). The figure reaches MVR 62.7 billion with the inclusion of loan guarantees.

Former President Abdulla Yameen Abdul Gayoom's administration introduced the 'Sovereign Development Fund' to increase the state's capacity to repay loans. The fund had accumulated MVR 468 million to date.

Maldives has currently exceeded the 60 percent of GDP allocated for state debt that is designated the optimum amount by international standards for developing countries to allocate for sustainable development.

As per international standards, the maximum level of sustainable debt for developing countries is 60 percent of state GDP. However, Maldives' debt levels exceed the aforementioned limit.

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