Central bank releases MVR 4 billion as govt. overdraft

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

The government has overdrawn MVR 4 billion from the central bank Maldives Monetary Authority (MMA).

The overdraw of the public account means that the MMA lends the government more than the actual amount of funds in the account, which in turn increases the cashflow in circulation in the economy.

Statistics published by MMA for the month of July show that it had released MVR 4 billion to the government by July 29. 

The government had collected MVR 3.5 billion in advance from the MMA by the end of June. 

MMA released the funds after the parliament permitted to do so upon the request of Finance Minister Ibrahim Ameer. The funds are to stabilize the government spending and the economy which took a massive hit due to COVID-19.