Two agreements have been signed between the Maldivian government and the World Bank, where USD 30 million assistance will be given to the country.
On behalf of the Maldivian government, Minister of Finance Ibrahim Ameer signed the agreement while the World Bank’s Director to the Maldives and Sri Lanka Dr. Idah Z. Pswarayi-Riddihough signed on behalf of the World Bank.
In this agreement, it has been agreed that the World Bank will give a grant of USD 20 million to strengthen the government’s budget policy framework.
The remaining USD 10 million is a Catastrophe Deferred Drawdown Option (Cat DDO) with an associated Pandemic Emergency Financing Facility (PEF). The CAT DDO will help to enhance and minimize the impact of the physical, human and fiscal impact of climate change, natural disasters and diseases.
World Bank’s Director to the Maldives and Sri Lanka Dr. Idah Z. Pswarayi-Riddihough stated that the agreements are part of integrated risk management options to improve the country’s resilience to shocks and safeguard macroeconomic sustainability.