The Speaker of Maldives Parliament Mr. Mohamed Nasheed has warned on state reserve’s expected drop to critical levels by July 2022.
Nasheed’s comments followed the revelation of Ministry of Finance regarding the state debt increasing to MVR99 billion.
Moreover, the Parliament Speaker had spoken about restructuring the debt back in 2019 and followed up on it in 2020 due to its negative future implications, while Nasheed noted that the state will face further challenges in maintaining the debt obligations by 2023.
Furthermore, Nasheed noted on the ambiguity surrounding debt repayment within the following few months with regards to the approaches taken by the current administration to generate revenue to the state.
Nasheed had advised for Parliament’s Public Finance Committee to step and conduct analysis into the matter.
Earlier, the Ministry of Finance revealed that state debt had increased by MVR4.3 billion during the first quarter of the current year compared to the final quarter of 2021.
