The government has introduced a financial package of USD 162.4 million to mitigate the losses incurred on the Maldivian economy due to the COVID-19 pandemic.
Minister of Finance Ibrahim Ameer stated the economy is expected to take a major hit due to COVID-19, noting the Gross Domestic Product (GDP) growth is now estimated to be at 0.5% this year, having initially estimated growth of 7.5%. The finance minister said the government is introducing a financial package of USD 162.4 million to help overcome the cash flow difficulties faced by local businesses during this time of crisis. He said the government will issue loans up to USD 129.9 million under the package, adding the loans will be issued with an interest rate of 6% and a repayment period of 3 years along with a grace period of six months.
Furthermore, the finance minister said USD 19.5 million has been allocated from the package for electricity and water subsidies. The minister also announced the decision of the government to reduce the prices of oil sold by the State Trading Organisation (STO). He added arrangements are also being made to facilitate a moratorium of six months on loans issued by Bank of Maldives (BML).
Minister Ameer further stated the government has decided to continue with the Public Sector Investment Programme (PSIP) projects scheduled for this year, which are worth USD 675.4 million. He said the government will prioritise local contractors when handing over the projects.