Central Bank: IMF's financial aid of USD 28m received

Maldives Monetary Authority (MMA) headquarters in Male' City. (Sun Photo/Fayaz Moosa)

Maldives Monetary Authority has stated that the financial aid of USD 28.9 million from the International Monetary Fund has been deposited.

The financial aid will be utilized to assist the country in its bid to control the spread of COVID-19 and was obtained under the Special Drawing Rights granted to the Maldives.

The SDR means that the financial aid is not weighed down with the strict conditions that IMF imposes when providing financial loans.

IMF stated that the funds were to continue with the government expenses, operations and settle the balance of payment.

The funds would also be used to import food items and medical equipment into the country, in addition to maintaining the exchange rate and flow of foreign currency in the exchange market.

MMA is also arranging other methods to provide banks with foreign currency.

The central bank today confirmed that it had obtained USD 150 million from the currency swap agreement made with the Reserve Bank of India. World Bank is also set to provide the Maldives with aid of USD 20 million, in addition to the USD 10 million it has already provided.

The International Finance Corporation (IFC) is also set to provide USD 50 million while the OPEC Fund for International Development will be providing the Maldives with a loan of MVR 308 million. The government is working to obtain USD 215 million from foreign and international institutions to fully cope with the repercussions of the pandemic.