Maldives to borrow extra $200m for budget support
The government took out a loan of 50 million euros (MVR 842.8 million) from Hungary's Exim Bank in June for budget support.
By
Ahmed Naaif
The Ministry of Finance has decided to borrow an additional $200 million (MVR 3.1 billion) from external creditors this year as budget support.
The Finance Ministry has submitted to the parliament an MVR 6.5 billion supplementary budget. The budget estimates that MVR 6.1 billion will have to be borrowed to cover the expenditure included in the supplementary budget.
The ministry aims to finance the budget through:
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MVR 1.1 billion - Loans for implementation of infrastructure projects
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$200 million - loan from external creditors for budget support
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MVR 1.9 billion - domestic borrowings
The government took out a loan of 50 million euros (MVR 842.8 million) from Hungary's Exim Bank in June for budget support.
This year's budget estimates that MVR 11.5 billion will be borrowed to cover the budget deficit. However, with the supplementary budget, the deficit is now estimated at MVR 15.5 billion.
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Budget debt will reach 10.8% of GDP
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MVR 2.9 billion more than the initial estimate
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Maldives' direct debt will reach MVR 108.3 billion by the end of the year
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Debt to GDP ratio including guaranteed debt will reach 112.2%
