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Government has taken good economic decisions: Former MMA Governor

Former Governor of Maldives Monetary Authority (MMA) Dr. Fazeel Najeeb has stated the government has taken good decisions under the economic recovery plan to mitigate the impact of COVID-19 on the Maldivian economy.

Speaking to PSM News, the former governor said the policy actions announced by the government to mitigate the impact of the pandemic on the local economy are good, adding it is important to maximise efforts to boost tourism once the pandemic is controlled, as the economy is highly dependent on tourism. He said Maldives must focus on adapting to the evolving conditions and maximise efforts to boost tourism accordingly, noting the tourism sector can be rapidly boosted with the right action plan.

Furthermore, Dr. Fazeel said no nation would find it easy to overcome the economic decline caused by the COVID-19 pandemic, noting the global economy has been badly hit by the pandemic. He said in addition to assistance from financial organisations, mutual cooperation and assistance is required among nations in order to overcome the crisis together.

Speaking in this regard, the former governor said the government must seek loans and assistance from international financial organisations to overcome the current situation. Fazeel added loans can be acquired at a low interest rate if disciplinary actions such as sovereign bonds are taken prior to seeking assistance. He also said it is important to have a plan B which involves seeking assistance from neighbouring countries, in case adequate assistance cannot be provided by financial organisations.

Dr. Fazeel Najeeb served as governor at MMA from 2008 to 2013. He played an important role in introducing a contemporary monetary policy structure in Maldives and drafting the Banking Act.