Minister of Finance: State’s debt at USD 3.7B

Minister of Finance, Ibrahim Ameer has announced the State’s debt is USD 3.7 billion.

Speaking during a press conference this Monday afternoon, Ameer announced that the domestic debt of Maldives is placed to be USD 1.9 billion and the external debt of Maldives is placed at USD 1.8 billion – totaling USD 3.7 billion.

Maldives, during former President Abdulla Yameen Abdul Gayoom’s administration undertook multiple projects financed through loans – most from China.

The administration had previously not disclosed the exact amount of the debt to China.

Ameer announced this Monday that the Maldives is indebted to China by USD 1.4 billion; USD 857 million of which has been dispersed.

SOVEREIGN GUARANTEE TO 24

Ameer announced this Monday that Yameen’s administration provided sovereign guarantee to 24 parties which totals USD 1.368 billion; USD 667 million of which has been dispersed.

He said the details of the parties awarded sovereign guarantees will be published on the ministry’s website this Monday.

MONEY OWED TO STATE COMPANIES AND PRIVATE SECTOR COMPANIES

“The State owes an estimated MVR 2.4 billion to State agencies,” said Ameer.

They include:

• Purchase Order (MVR 428 million)
• Past and Posted Invoice (MVR 824 million)
• Aasandha (MVR 103 million)
• STO (MVR 786 million)
• Stelco (MVR 151 million)
• Fenaka Corporation (MVR 101 million)
• Island Aviation (MVR 66 million)

MONEY OWED TO THE STATE:

Ameer announced the State is owed MVR 1.3 billion.

Details:

• MVR 30 million owed by private sector
• MVR 14 million for loan on boats by Ministry of Fisheries and Agriculture
• MVR 18 million from loan by Ministry of Fisheries and Agriculture to install engines
• MVR 32 million in loans issued to private parties via Agricultural Revolving Fund
• MVR 514 in loans issued to companies
• MVR 369 million from POLCO (Police Cooperative Society)
• MVR 319 million from SIFCO (Sifainge Cooperative)

The recently passed State budget for 2019 states USD 110 million as grand aid; USD 45 million of which has now been guaranteed, said Ameer this Monday.

Ameer also noted that the State Budget 2019 has a bond of USD 150 million, which the government will not need to sell if it obtains a necessary budgetary support of USD 200 million from bilateral partners, said Ameer.

“There is already an existing Sovereign Development Fund at the Ministry of Finance to manage debt. We plan on designing policies to buy back the 2022/2023 bond from a secondary market in order to minimize the debt,” said Ameer.