Finance Minister, Abdullah Jihad has commented on the World Bank's statement regarding Maldives, saying that Maldives has the ability to pay debts, and that all debts have been paid to date.
Minister Jihad responded to the World Bank's review of Asia, yesterday at the press conference held by the Economic and Youth council. Minister Jihad said that all loans have been paid and that loans had been paid by the due date. Adding to his response, he said that Maldives had a sizeable reserve, and that he could guarantee that Maldives would not go into a state where they were unable to pay their debts.
According to Minister Jihad, the government only took loans with the lowest interest rates, along with a reasonable amount of time to pay off their debts. He also said that the government always set up an organized plan to pay off the loan before borrowing.
Minister Jihad said that the World Bank and Maldives had a different criteria when sizing up loans and debts. Minister also said that the government considered the loan as a debt even before the due date of payment because the loan was considered as a debt from the date it is taken.
At yesterday's press conference, Minister Jihad told the press that every country borrows and all of them have debts in some form or another. Adding to his comments, Jihad said that Maldives only took loans for development schemes, and that money was only borrowed for the schemes deemed most beneficial. He also said that it was natural to face some difficulties after borrowing, however it is more beneficial in the long run as the schemes are expected to contribute to economic growth and development.
