Friday 1st Mar 2024
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State Debt

Govt refuses to disclose the interest rates of the newly acquired loans

The government has refused to disclose the interest rates for the loans worth MVR 2 billion acquired through external sources.
TMJ raised this question today, during a press conference held in the President’s Office by the newly appointed Spokesperson Miuvaan Mohamed, however, was denied an answer.
Despite the fragile state of the global economy, statistics published by the Ministry of Finance for the month of June revealed that the government had taken EUR 18.7 Million from European Investment Bank, EUR 101 Million from another European bank and USD 8.7 Million from IDB within that month, which comes to a total of MVR 2.17 Billion (MVR 2,017,490,041). These loans coincided with a period where international banks were amending their interest rate policies in line with the inflation within global markets.
Especially, the policy changes with higher interest rates made to the America Reserve Bank led to a spike in USD value whereas other currencies suffered a decline. TMJ had asked Miuvaan about the interest rates on the loans of MVR 2 billion, citing the volatility of currency values at the time.
Miuvaan responded that he did not have the details of the interest rates, although he will share any information available from the finance ministry.
Miuvaan stated that MVR 34.1 billion was budgeted for the year, however since the fuel prices in international markets soared, to control electricity bills, the government has had to spend hefty amounts on subsidies. Furthermore, he said that the government has already expended more than the MVR 340 million budgeted for subsidies.
Former Journalist turned spokesperson said that the Ukraine conflict was responsible for the surge in fuel prices and assured that the government will not partake in any unmanageable debt.
Miuvaan claimed that the government has no qualms or doubts about not being able to make debt payments and that the government will continue to take more loans as our financial capacity opens up with the economy.