Official statistics have shown that the government has spent over MVR one billion for loan repayment this year.
The latest Weekly Fiscal Development report published by the Finance Ministry shows the government spent MVR 1,1015.5 million on loan repayments as of December 9. Last year, this amount was at MVR 852.6 million, although MVR 3.7 billion was approved for the purpose.
While presenting the budget for the upcoming year, Finance Minister Ibrahim Ameer said that despite having had to borrow multiple loans from several creditors, the current administration's debt was at MVR 34 billion. The reason for the high debt is borrowings by the former administration, he had said.
The budget for the upcoming year has a deficit of MVR 9.7 billion, which is 11.1 percent of the GDP. An additional MVR 13.4 billion is needed to finance next year's budget. The amount includes the budget deficit of MVR 9.7 billion, MVR 2.9 billion for loan repayment, MVR 769.2 million transferred to the Sovereign Development Fund, and another MVR 35.7 million that the administration must finance in other ways. The government has planned to secure up to MVR 7.5 billion from foreign parties and MVR 5.9 billion from local parties.
Finance Agreement signed between the Maldives government and ADFD - Borrowings have increased due to the economic downfall of the COVID-19 pandemic
