Maldives working with IMF, IFC to overcome economic situation of virus

Finance Minister Ibrahim Ameer has stated that the government is working to obtain funds from the International Monetary Fund (IMF) and the International Finance Corporation (IFC).

According to the minister, the government is working to obtain funds of USD 50 million from IFC and USD 30 million from the IMF, to overcome challenges posed to the economy of the country due to the ongoing situation with the global pandemic Covid-19.

In a news conference held last night, the minister announced that an expected deficit of MVR 12 billion from the state budget. To overcome this deficit, the government was holding discussions with international institutions on an almost daily basis. The minister added that the country was in discussions with the IMF to obtain money through the Special Drawing Rights granted to the country.

“If we are to withdraw the SDR fully, we can withdraw USD 30 million. We working on that possibility. We are not working in any way to obtain a special package. Currently, not many requirements are there for IMF or any other institution. They also see this as a special situation.” said the Minister.

Minister Ameer noted that the country was holding discussions with the IFC to assist the national bank BML in issuing loans for businesses in the country. USD 50 million will be designated for the purpose.

Under the government announced stimulus package, businesses earning a revenue of more than 10 million would be assisted with loans by BML. The bank has designated MVR 1 billion for the purpose.

The Maldives was working with institutions such as the IMF to build a rapporteur that will encourage other such institutions to also work with the country., said Minister Ameer who also added that he was assured of obtaining the USD 150 million of free aid included in the budget. The minister concluded by saying that the government had already obtained USD 50 million from the free aid.