Parliament approves overdraft extension

The Parliament has approved the extension requested by the Finance Ministry for the funds withdrawn from Maldives Monetary Authority (MMA) as an overdraw facility.

Earlier in April 2020, the parliament approved to suspend some articles of the Fiscal Responsibility Act to allow the government to borrow MVR 4.4 billion from the central bank to manage state cashflow.

Last week, the Finance Ministry requested an extension to the overdraft period of one year provided by MMA. A special committee assessed the request and the parliament floor on Sunday approved to grant a one year extension as requested by the ministry. During the parliament sitting held Sunday, 47 members voted in favor of the extension while four members voted against it.

Speaking at the Parliament regarding the request to extend the overdraft period, Finance Minister Ameer had said the positive results of the steps taken to recover the economy are now being witnessed. The steps ensure that the negative impacts on the economy is negated and that the economy is recovered, he added. This includes the steps taken to manage the health crisis and the loan assistance provided to small and medium businesses, debt moratorium, utility bill discounts, the minister had said.