The government plans to repay a certain number of bills below a specified threshold every month and will maintain separate records of these payments.
The state has decided to explore options for vendors to convert unpaid dues into treasury bonds (T-bonds), which would generate additional revenue for vendors and give them the option of leasing land to offset payments owed to the state.
According to the latest data from the Ministry of Finance, the state currently owes around MVR 3 billion in unpaid bills to various parties, including bills that are more than six months old.
The President's Office announced that the government will begin making payments to vendors in a transparent manner, starting with the oldest bills, depending on the amount of money available each month.
The government plans to repay a certain number of bills below a specified threshold every month and will maintain separate records of these payments.
Additionally, the President's Office stated that a task force will be established to offset the money owed by businesses to the state, particularly taxes owed to Maldives Inland Revenue Authority (MIRA).
Following consultations with the cabinet, the President will review loan options presented by the Ministry of Finance and explore additional loan options, including short-term loans.
The Cabinet session held yesterday also focused on measures to strengthen the foreign exchange market and increase demand for the local currency Maldivian Rufiyaa.
Attorney General Ahmed Usham in a press conference after the cabinet meeting said that amendments to the Income Tax, Pension, MIRA, and GST Acts will be introduced soon. These changes will require businesses earning in foreign currency to pay customs duties, income tax, and pensions in dollars.
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