Parliament rejects motion to provide sovereign guarantee to private companies

DRP leader and Kaashidhoo constituency MP Abdulla Jabir | Photo: Majlis

Malé, Maldives – The Parliament of Maldives today rejected a motion proposed to provide easy access to sovereign guarantees for large private businesses.

The motion submitted by the MP for Kaashidhoo Constituency Abdulla Jabir stated that private companies are facing challenges in obtaining loans referring only to the agreements with the Government of Maldives and proposed for easy access to sovereign guarantees to private companies that are able to provide assets for mortgages.

Further, the motion highlighted that the Maldives Government owns the land used by private companies that the companies are now unable to use as there is no progress for projects due to the pandemic resulting in tremendous losses.

In his motion, MP Jabir notes that the government has previously made such allowances for private companies.

The motion was rejected with 15 against votes.