Govt. requests 1-year extension of overdraft

Finance Minister Ibrahim Ameer. (Sun Photo/Fayaz Moosa)

The Finance Ministry has requested the parliament to extend the period granted for a financial overdraft to cover the expenses of the government. 

The Ministry requested to extend the time period to one year. A signed letter by the Finance Minister Ibrahim Ameer to the Parliament read that he was requesting the extend the period of suspension of certain clauses of the Fiscal Responsibility Act in order to stabilize the economy and manage government expenditure following the COVID-19 pandemic. 

The Parliament had granted approval to suspend some clauses of the Act for a year on April 26, 2020. 

Such a suspension of the related clauses of the act could mean that the government would be able to obtain the funds from the central bank Maldives Monetary Authority (MMA) without any limits.