MVR 1.1 Billion spent on debt repayment in 2020

Finance Minister Ibrahim Ameer at a National Emergency Operation Center press briefing | Photo: Sun

Malé, Maldives — Finance Ministry of Maldives has stated that the state had spent MVR 1.1 Billion in paying back the foreign debts despite having some of the loans postponed by some of the countries.

According to the statistics revealed by the Finance Ministry, till December of 2020, the Ministry had spent MVR 1.18 billion to repay the loans which were taken although last year’s budget to repay the debts was only MVR 1.12 billion.

According to the ministry, forty percent of the loans taken by Maldives were from China which they allowed easements to the country by postponing the loans. These loan repayments were postponed under the under the Group of Twenty (G20) Debt Service Suspension Initiative (DSSI).

Finance Ministry also informed that the loans that were defermented must be payed within the first six months of this year. The government estimated to have a decrease of MVR 809.1 million in repaying the loans due to help given under G20.

Along with China, the Maldivian government has also signed an agreement with the Japanese government to postpone the debts the island nation owes to Japan.

For the budget of 2021, the parliament has passed the bill with MVR 1.88 billion for repaying the debts that the country owes. According to the statistics revealed by the Finance Ministry, the national debt will be at MVR 70.3 billion by the end of 2021.