Over MVR 957 mln spent for loan repayment

The State has spent over MVR 957.7 million for loan repayment.

The Finance Ministry said it expects MVR 1.4 billion spent for loan repayment, out of which MVR 957.7 million has been utilized for the purpose thus far. During the same period last year, MVR 845 million was spent for loan repayment.

While presenting the proposed budget for the upcoming year at the Parliament, Finance Minister Ibrahim Ameer had said the country's borrowings from foreign parties increased as a result of the COVID-19 pandemic. However, the current administrations total debt is just MVR 34 billion, he said. The debt increased due to the loans borrowed by former President Abdulla Yameen Abdul Gayyoom's administration, he said.

The budget forecast for 2021 estimates the debt to reach MVR 9.7 million in the upcoming year. The government needs an additional MVR 13.4 billion to finance next year's budget. This includes MVR 9.7 billion in debt, MVR 2.9 billion for loan repayment, and an additional MVR 805 million for other requirements. The government hopes to acquire MVR 7.5 billion from external partners, and MVR 5.9 billion internally.