Speaker of Parliament Mohamed Nasheed has revealed an amendment has been proposed to the Land Act to grant residency for resort developers for the duration of lease of an island.
Speaking on the parliamentary report on state debt, Speaker Nasheed deliberated on two ways to increase state income and pay off state debt. As such, the speaker noted the first option is to pass the Bankruptcy Bill, allowing the state to re-sell islands leased for tourism development and stalled due to financial issues of the developer. Noting there are more than 70 islands leased for tourism development and stalled, the speaker said re-selling these islands will increase the net reserve of the state and reduce the number of non-performing loans.
Speaker Nasheed said the second option to increase state income is to grant residency for resort developers for the duration of lease, through an amendment to the Land Act.The speaker said allowing the resort developers to live in the leased islands will boost state income without imposing additional taxes. He said the proposed amendment to the Land Act to grant residency for tourism developers has been backed by the cabinet as well.
The parliamentary report on state debt, which was prepared based on information provided by the Ministry of Finance, revealed the state debt starting from 2012 till now has risen to USD 11 billion. Speaker Nasheed had earlier stated next year will be a very difficult year for the state financially, due to the increased debt. He expressed belief the grace period for loans taken by the state needs to be extended until 2024, considering the projected income of the state over the next few years. He also expressed hope the interest rate of some of the loans can be reduced.