No risks to Maldives from loans: Finance Minister

Minister of Finance Ibrahim Ameer has assured there are no risks from the loans taken by Maldives.

From recent times, Maldives has been utilising loans from foreign countries to develop the country and to enhance the economy of the country. However, with the increase in number of loans, the debt of Maldives has amounted to over USD 3.36 billion.

Meanwhile, OPEC Fund for International Development (OFID) granted Maldives a loan of USD 50 million with an interest rate of 4% to be paid back within 20 years. The new loan has raised questions whether the loans may be of risk to Maldives.

Speaking with regard to the loans, Finance Minister Ameer stated the loan taken from OFID is included in the State Budget, adding debt for the year was estimated including the mentioned loan. He said the policy to control debt is ensuring the GDP per capita is higher than the debt.

In reference to standards of International Monetary Fund (IMF) and Public Finance Act of Maldives, the average of debt must be 60% lower than the GDP. Citing the GDP, the finance minister assured there are no risks from the loans, adding the tourism sector of Maldives developed significantly in the past year, and therefore economic growth is expected to increase by 7.5% this year.