Government arranges payment for STO to tackle oil shortage

Government has arranged finances to the State Trading Organization (STO) a few days after the company declared they were having difficulties acquiring oil shipments due to delayed payments from the government.

Managing Director of STO Shahid Ali warned on Thursday that the company had just 10 days of oil reserve.

A senior official from the Maldives Monetary Authority (MMA) confirmed to Sun today that the central bank has approved finances for STO to acquire oil. The official did not provide details.

Minister of Finance and Treasury Abdulla Jihad told Sun today that “arrangements are being made to bring the oil.” The Minister also failed to provide details.

MD of STO Shahid Ali said the company's source grants them a period of 120 days to settle payments. STO currently owes $20 million in pending payments to their source, he said.

Government owes STO MVR 260 million ($17 million).

Finance Minister Jihad said the government is working to arrange payments as the become available and that the Ministry has will pay MVR 50 million to STO, which has now been forwarded to MMA for clearance.