Minister of Economic Development Fayyaz Ibrahim has stated that the Maldives is still able to take on more debt, and that it is needed for investment in large-scale projects to boost the economy.
On Monday, the Parliament’s Public Accounts Committee met representatives from Economic Ministry, Finance Ministry, and Maldives Monetary Authority (MMA) in order to discuss the current debt level and debt management.
While speaking at the meeting, Minister Fayyaz said that the current economic situation in Maldives allows for more debt to be taken, and this is needed in order to finance various large-scale projects. He added that despite the challenges, the economy is moving forward in the right direction.
The Minister revealed that the number of tourist arrivals until 9th June this year is higher than that of the same period in 2019. He said that there was a difference of about 42,000 in arrivals between these two years. Additionally, he credited the 13 percent growth of GDP to the COVID-19 Economic Stimulus Packages and said that even in the worst case scenario, a projected growth of 7.9 percent will be attained next year.
He stated that despite the obstacles brought on by the COVID-19 pandemic and the Ukraine-Russia conflict, the biggest challenge is talks of the country going bankrupt, resulting in investors hesitating to invest in the country.