Minister of Finance Ibrahim Ameer has refuted claims that the Maldives is at risk of emptying the state reserves and defaulting on its loans. He made the remarks in a series of tweets on Sunday night.
Minister Ameer said the state reserves will recover to pre-COVID-19 levels as the Maldives receives more revenue, adding that there are currently no challenges in repaying the state debt and that the state reserve will be at a good financial status by the end of the year. The minister said the gross and net reserves are also at optimum levels and that the government is monitoring the inflow and outflow of foreign currency in order to take immediate steps if necessary.
Minister Ameer also refuted the claim that the Maldives is at risk of default as false and unsubstantiated accusations made to spread disinformation to the public and foreign investors. He warned that such claims will affect the financial market and harm the economic prospect of the country, at a time when the globe is in a fragile economic situation. Moreover, he assured the economy is steadily improving and though the country will be impacted by the rising prices in international commodity markets, the government is taking immediate measures to mitigate such risks.
Furthermore, Minister Ameer said the International Islamic Trade Finance Corporation (ITFC) has increased its financing facility to State Trade Organisation (STO) by US$ 175 million to reduce the impact on state reserves. He also added that the government’s aim is to re-evaluate its finances in order to guarantee the continuation of its services and maintain a good financial status in the mid-term.
