Minister of Finance Ibrahim Ameer has stated the Maldives has received USD 520 million as foreign grants and loans amid the COVID-19 pandemic.
Speaking at the Parliament of the Maldives regarding the financial and economic impact of COVID-19 on the Maldives, Finance Minister Ameer said the government has been working with international financial organisations and bilateral partners to acquire assistance for economic recovery efforts. As such, he noted USD 520 million has been generated as foreign grants and concessional loans amid the pandemic.
The minister further highlighted there are significant changes from the income projections made in the State Budget for 2020. Noting USD 1.94 billion was initially projected to be received as foreign grants this year, the minister said only USD 908 million is now expected to be generated as foreign grants this year, while the state debt is expected to rise to USD 778 million this year. He also highlighted the significant reduction of state income through tourism and other major industries due to the pandemic.
The finance minister further stated the government will ensure the provision of all basic services to the people, despite the low income of the state. The minister noted the development projects planned for the year are ongoing despite the difficulties posed by the pandemic, adding the necessary payments relevant to the projects are being processed without disruption. He also highlighted the income support programme launched by the government to assist individuals whose sources of income have been affected negatively due to the pandemic.
Speaking further, Minister Ameer said next year’s budget will include new investments in fisheries and agriculture, with the aim of reducing the dependency on tourism for income. He added new investments will also be made in the social sector to enhance the capacity of basic services such as healthcare.