National reserve continues to decline, debt rises to MVR 50 billion

The National Reserve of the country was reduced by seven percent while the country's debt increased to MVR 50 billion in the first six months of 2019, statistics by the central bank Maldives Monetary Authority has shown.

The quarterly report by MMA has shown that the national reserve of the country stood at USD 677.4 million. This is a five percent reduction from the amount in the reserve in December of last year.

The report cited a reduction from May of 2019 onwards while the reserve had increased up until February. The national reserve had around USD 938.6 million up until February. 

MMA stated that the reason was a reduction in the dollar deposits by banks in MMA. The report also stated that the Maldivian economy would slow down this year and the debt of the country would also rise higher than MVR 50 billion.

The internal debt of the country amounted to 58 percent of the total with MVR 29.7 billion. Much of this is covered by the treasury bonds and bills. The MMA also stated that the government had gained MVR 1.1 billion and MVR 819.2 million by selling bills to commercial banks and other financial institutions.

63 percent of these bills were purchased by commercial banks while 34 percent were purchased by other financial institutions. 

The external debt of the country stood at MVR 21.3 billion in the first six months of 2019. The number stood at MVR 20.4 billion at the end of last year. The external debt of the country increased due to the loans obtained from foreign sources. The government had obtained MVR 733.5 million in loans in the past six months.