Finance Minister Ibrahim Ameer has stated that the increasing debt of Maldives is not a concern, and emphasized the importance of expanding the country's economy.
While the minister has stated as such, the current administration had voiced concern on the increasing debt during the former president Abdulla Yameen Abdul Gayyoom's tenure. At the time, the cabinet ministers of the former government had similarly assured that the increasing debt was not an issue, and had affirmed the government's capability to manage the debt.
The total debt of the government has now increased to MVR 50 billion from MVR 48 billion.
Speaking on the increment on local channel Raajje TV on Monday, Minister Ameer said the increase in debt is not a concern as the government attempts to expand and strengthen the country's economy.
"The concern is not with the debt increasing to MVR 50 billion. Our target is to widen the country's economy. Our economy is growing with the growth of SMEs. [What is important] is the rate of economy growth", said the Minister.
Noting that the country's debt increased by MVR 1.9 billion after the current government began administration, Minister Ameer said the archipelago's debt was at MVR 48 billion excluding guarantees when the administration took over.
"I have previously noted that the treasury bond of MVR 1.5 billion [US$ 50 million] is a number that can be converted into grant assistance, even if it is sold as a treasury bond and recorded as a debt now. The Indian government had assured during the transition period that at maturity, it will be arranged as a grant assistance. Therefore, it will be recorded as a grant aid", said Ameer.
Finance Minister Ibrahim Ameer
