Maldives government is working to acquire USD200 million from foreign financial institutes, confirms Ministry of Finance.
The funding is being acquired to recover from the Covid-19 pandemic, while the ministry concerned USD200 million will fall short to fully manage the country.
Chief Financial Budget Executive of Ministry of Finance Ahmed Sharuvash Adam said the state revenue has fallen significantly, as attested by Maldives Inland Revenue Authority (MIRA) on April 2020 earnings.
Due to the shortfall, Maldives government is attempting to acquire funds from international financial options.
Sharuvash further noted government was working on acquiring USD233 million from 100 different financial institutions while adding some of the funds have already been received.
He had also explained if state manages to acquire the aforementioned funds, government will be able to cover only a quarter of the state expenditure.
Meanwhile implementations of loan repayment leniency, revenue from banks has fallen while circulation of money in local economy have constrained. Additionally state revenue via pension have reduced in light of salary cuts and no redundancies.
Ministry of Economic Affairs, Registrar of Companies Mariyam Visam warned the economic recovery period will stretch out as the pandemic have severely affected it.
She also commented the ministry was working to identify home-based and unemployed workers, and shared plans to enhance skills of unemployed workers.
Visam further detailed structural changes for certain industries for the economy to increase productivity. She highlighted alternatives for the construction industry by replacing laborers with machinery.