Governor of Maldives Monetary Authority (MMA) Ahmed Naseer has revealed the sovereign development fund established by the former government has over USD 100 million saved as of now.
Speaking at the budget reviewing committee, Governor Ahmed Naseer said a percentage of airport development fees and some other fees taken by Maldives Airports Company Limited (MACL) are deposited to the sovereign development fund weekly. In this regard, the governor said a percentage of the sovereign bond revenue is also deposited to the sovereign fund weekly.
Expressing concerns, the governor said the sovereign fund is not protected by a law, requesting to urgently secure rules and regulations on how money can be taken from the sovereign fund. The governor revealed now the sovereign fund is monitored by a special governing council.
The former government of President Abdulla Yameen Abdul Gayoom established the sovereign development fund to utilise as a last resort, if the government faces difficulty in repaying loans taken for major development projects or in cases of economic crisis.
The money into the Sovereign Development Fund currently comes from the Airport Development Fee (ADF), which is taken from all passengers who use Velana International Airport (VIA) at the rate of USD 12 per Maldivian and USD 25 per foreigner. Though it is kept in a fund at the MMA, it is managed separate from the money in the State reserve.
Several countries across the world have integrated such funds, which are used under strict policies to fund projects lacking financial support and under emergency situations.