Minister of Economic Development Fayyaz Ismail has stated that the government will be able to manage its debt without halting development projects in response to the World Bank’s concern of Maldives’ high debt levels.
Speaking to PSM News, Minister Fayyaz detailed the economic strategy of the administration following the COVID-19 outbreak and said that the government has been working with the World Bank and other international financial institutions before and during the pandemic. He also noted that the financial institutions also acknowledge the need for the government to take up debt and that the Minister of Finance Ibrahim Ameer is in discussions with the World Bank to formulate plans to manage the debt.
Minister Fayyaz said the Russia-Ukraine conflict has impacted the regional economy but that the policies and measures put in place will allow the government to continue its projects without any obstructions, as it is receiving funds for development and essential work. He highlighted the importance of accepting debt in order to continue its development projects but assured the debt management strategy will be successful.
World Bank stated that the Maldives economy, buoyed by a strong rebound in tourism, is projected to grow at 7.6% in 2022 and fully recover to pre-pandemic levels by 2023, but the country’s high debt levels are a major concern.
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