Loan Repayment Fund Decreases by MVR 400 Million in One Month

Statistics show that there is only MVR 700 million remaining in the Sovereign Development Fund (SDF), a fund used to repay loans taken by the government.

Statistics released by the Finance Ministry show that the SDF had MVR 1.1 billion by the end of last year. However, the balance of the fund has decreased by MVR 400 million within a month. Finance Ministry stated that the amount was withdrawn from the fund in order to invest.

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The fund is frequently used to invest in T-bills sold by the government. Therefore, a large part of it is spent on recurrent expenditure for the government.

The SDF was established in 2017. MVR 3.8 billion has been deposited into the fund in the past five years. At present, 18 percent of the deposited funds in the SDF can be utilized.

SDF was established during former President Abdulla Yameen Abdul Gayoom’s administration as a fund, to save money in order to pay off the state debt. It is managed under an agreement between MMA and the Finance Ministry.

The fee charged from passengers departing from Velana International Airport is deposited into the SDF Fund. This is USD 12 charged from Maldivians travelling in economy class and USD 30 charged from expatriates. Passengers travelling by business class will be required to pay USD 60, first class USD 90 and passengers travelling by private jets USD 120.

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