- Discussions on concession loans
- Changes to subsidies discussed
- World Bank supports economic policies
Economic Council Chair and Minister at President's Office Ahmed Zuhoor has stated that World Bank has given assurance they will be increasing the aid granted to the Maldives.
Speaking to Avas regarding the discussions with World Bank Vice President for the South Asia Region Annette Dixon, Minister Zuhoor said discussions with World Bank centered on acquiring concession loans for the development projects. Minister Zuhoor said if concession loans are granted then the expenditure on finances will be lessened as well.
Minister Zuhoor said that as a result of these discussions, World Bank had pledged to increase the aid in the next three years. He added the Bank had also pledged to assist in acquiring concessional loans.
Central Bank Governor Dr. Azeema Adam also attended the meeting in Washington DC headquarters of the Bank.
Zuhoor said he had informed the Bank representatives on the implementation of limiting subsidies as recommended by the Bank and other financial institutions. The decision, he said, was supported by the World Bank.
In the meeting, Minister Zuhoor had shared information on the major projects currently ongoing in the Maldives, as well as the President's economic agenda and development work begin carried out. This included the airport development project, bridge and youth city projects.
Zuhoor said the decision was a difficult one for the Government but taken on the account of the betterment of the economy. Due to this, he said the Government will be able to bring in development in fishing, agriculture, real estate and other areas, ensure investor confidence.
Minister Zuhoor previously had said the basic food staples subsidies was recommended by financial institutions, which had raised the issue of high amount of subsidies when reviewing loan applications.
