The Ministry of Finance, on Tuesday, signed two agreements with the World Bank to increase the sustainability of public finances in Maldives and minimize impacts of natural hazards respectively.
The agreements were signed by Minister of Finance Ibrahim Ameer and World Bank Country Director for Maldives, Nepal and Sri Lanka, Dr Idah Pswarayi-Riddihough.
The first agreement was a USD 20 million Development Policy Financing (DPF), which will focus on improving the policy framework for enhancing the sustainability of public finances, strengthening the policy framework to increase budget credibility and reduce fiscal pressures.
The second agreement was a USD 10 million Catastrophe Deferred Drawdown Option (Cat DDO) with an associated Pandemic Emergency Financing Facility (PEF). The Cat DDO will help enhance the country's financial capacity to effectively manage human, physical and fiscal impact of climate change, natural disasters and diseases.
“The agreements are part of integrated risk management options to improve the country’s resilience to shocks and safeguard macroeconomic sustainability,” stated Idah Pswarayi-Riddihough.