Friday
22nd Nov 2024
Dhivehi Edition
Finance Minister Ibrahim Ameer and President Solih. Photo: President's Office.
International Monetary Fund (IMF) has stated that the Maldives remains at a high risk of external debt distress.
In a press release issued after the IMF's executive boards' consultation with the government of Maldives, IMF noted that the Maldives is at a high overall risk of debt distress. In addition, the press release further stated that the debt-to-GDP ratio is expected to remain high over the medium term.
External financing needs are projected to rise and draw on the already thin reserve buffers of Maldives according to IMF.
Noting that Maldives is at a high risk of debt distress, Directors stressed that sustained fiscal consolidation relying on both expenditure rationalization and domestic revenue mobilization, and supported by conservative debt management, is the top priority.
They emphasized that rationalizing capital spending and subsidies, combined with targeted assistance to the most vulnerable, and SOE reforms will be critical.
While the IMF has noted that the chances of the country's debt default are high, Finance Minister Ibrahim Ameer and government officials have repeatedly said that the Maldives will not face a situation where it cannot repay its debt.