State debt increases to MVR 79.8b

Finance Minster Ibrahim Ameer during a meeting with the Parliament's Public Accounts Committee on August 27, 2020. (Sun Photo/Fayaz Moos)

The state debt of the Maldives has increased to MVR 79.8 billion. 

Statistics published by the Finance Ministry showed that external debt for the third quarter last year was calculated at MVR 38 billion with internal debt calculated at MVR 41.7 billion. 

External debt stood at 66 percent of the GDP while internal debt stood at 72 percent. The total debt percentage was calculated at 138 of the GDP. Up until June, the GDP of the Maldives stood at MVR 57.9 billion. 

When compared with 2019, the total state debt of the Maldives was calculated at MVR 67.9 billion while in 2018 the debt stood at MVR 48.2 billion. 

While the debt of the Maldives has increased by MVR 8 billion, the nation has obtained a number of loans to cope with the expenditure of COVID-19. The main industry of the Maldives, tourism was left stagnated as a result of the travel restrictions that came across the world due to the pandemic. 

The government was forced to make four overdrafts from the central bank while Finance Ministry statistics show that the Maldives had to obtain 18 loans to cope with the pandemic.