The Government on Thursday decided to bring Maldives Industrial Fisheries Company Ltd. (MIFCO) under State Trading Organisation (STO).
The decision was made by the Cabinet, and it was announced by the co-chair of the Cabinet’s Economic and Youth Council, Fisheries Minister Dr. Mohamed Shainee.
At a press conference held at the President’s Office, he said “the decision was made to strengthen the state-owned company’s management and operations, and as part of austerity measures to cut down government spending on subsidies.”
Tourism Minister Moosa Zameer said “the move will allow the restructuring of MIFCO’s corporate operations and implement effective cost-cutting measures.”
Minister at the President’s Office Ahmed Zuhoor said that “placing the loss-making company under STO will make it possible for the Government to bring down spending on subsidies.”
International lenders are ready to finance MIFCO, but that will be happen on after the company clears all its debts, Finance Minister Ahmed Munawar told the press conference, adding that the Government will pay off the company’s debts.
MIFCO, which was established by the Government in 1993, is the country’s leading exporter of fish products.