If more loans are taken, Maldives may face bankruptcy: MMA Governor

Governor of Maldives Monetary Authority (MMA) has revealed the nation may face bankruptcy if more loans are taken.

Speaking at the budget-reviewing committee, Governor Ahmed Naseer said if more loans are attained, the government may face bankruptcy, adding for that reason, expenses should be fixed to income generated. Noting the financial situation of the country is causing deficit year on year, the governor highlighted all citizens must work together to avoid the catastrophe.

Furthermore, Governor Naseer added prior to 8 years, the government was run by about USD 500 million, noting today the same amount is allocated for salaries and allowances in the state budget. The governor further stated about USD 1.3 billion is spent as income.

On conclusion, he noted if loans are attained and not paid, Maldives may also be among unfortunate countries that have gone bankrupt.