Saturday
27th Apr 2024
Dhivehi Edition
President Dr. Muizzu meets with World Bank and IMF representatives. | Photo: President’s Office
The World Bank has offered to provide technical assistance to Maldives in implementing the financial reforms needed to overcome the financial crisis.
The World Bank Vice President for South Asia, Martin Raiser, concluded his four-day visit to Maldives on Wednesday. The World Bank said in a statement on its website that the World Bank will support Maldives’ development agenda.
During the visit, Raiser met with President Dr. Muizzu, Finance Minister Mohamed Shafeeq, Climate Change, Environment and Energy Minister Thoriq Ibrahim, Economic Development and Trade Minister Mohammed Saeed and several other cabinet ministers and development partners.
He also highlighted the important reforms that need to be introduced to overcome the major obstacles facing Maldives. He pointed out the constraints faced by Maldives due to low foreign exchange reserves, high debt, high expenditure and high interest rates on foreign loans.
Raiser noted that Maldives has achieved very good results in various areas of development in the past. However, noting that these achievements were exposed to hiccups due to fiscal deficit and external debt, he said the government needed to manage its debt with care and restraint while increasing its revenue, and at the same time reducing aimless spending.
Such reforms are essential to provide space for further investment in people, environment and infrastructure for Maldives to continue to grow and develop, he said.
A review of Maldives’ human resources conducted jointly by the government and the World Bank, he said, found regional and class disparities in the sector despite its human resource wealth compared to other small island nations in the region and other income competitors.
He noted that addressing the problem requires a prioritized order of spending, targeting subsidies to the neediest, and improving the quality of services further in underdeveloped rural areas.
Raiser said the World Bank will provide technical assistance to Maldives in implementing financial reforms to overcome the financial constraints.