Gov't spends over MVR 2 bln on loan repayment

The government has spent more than MVR 2 billion on loan repayments this year.

According to the Finance Ministry's weekly financial report, the government spent MVR 2.4 billion on loan repayments as of the 27th of this month. Statistics show that MVR 3.7 billion was spent on loan repayments during the same period last year.

The budget estimates that a total of MVR 2.8 billion will be spent on loan repayment this year.

According to the Finance Ministry, government expenditure has reached MVR 26.4 billion so far this year. This included MVR 12 billion for administrative expenses and MVR 7.3 billion for salaries.

Responding to a question by Kulhudhuffushi North MP Yasir Abdul Lateef at a Parliament sitting held on September 7, Finance Minister Ibrahim Ameer said the government had no intention of negotiating with lenders to seek debt relief. He said the Maldives has always borrowed from other countries but has never faced a situation of default.

The total debt of the country has now exceeded MVR 100 billion. This year's budget estimates that MVR 4.9 billion will be spent on repaying the loan next year.