Tourism Minster Faisal stated that small countries are forced to spend large amounts on projects due to international conflicts and environmental issues and asserted that eases such as low interest rates must be provided for such countries in obtaining loans.
Minister of Tourism Ibrahim Faisal has stated that alleviated measures must be established for Small Island Developing States (SIDS) such as Maldives in obtaining loans with low interest rates and refinancing these loans.
Speaking at the High-level Thematic Debate on Debt Sustainability and Socioeconomic Equality for All held by the United Nations General Assembly (UNGA), Faisal said that small countries are highly affected by environmental issues and conflict between various countries. He asserted that expenditure on structural projects increase as a result of such issues and consequently highlighted that there remains very few opportunities for obtaining finances through loans and other methods.
He had insisted that international financial regulations must be amended to address this and remarked that international cooperation is necessary to facilitate alleviated methods for fragile economies to overcome their financial crises.
“Similar to other small islands, Maldives expenditure to obtain funds from overseas is high. Hence, funds expended to settle the debt significantly increases. So [we] face major obstructions in investing on important fields.”
Faisal said that loans must be issued with sustainable and low interest rates to further advance smaller economies.
He remarked that there are barriers in procuring concessional finances owing to Maldives upgrading from a Low-Income Country to a Middle-Income State with the success of the country’s tourism industry, revealing that Maldives is obliged to depend on costlier options as a result.
“Barriers arise and obstructions are faced in settling debt due to this,” he said.
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