Ahmed Munawar, Governor of the Maldives Monetary Authority (MMA), emphasized the critical need for securing foreign loans to support the 2024 budget, stating that failure to do so could severely impact the country’s financial reserves. Speaking to the parliament’s budget committee, Munawar highlighted that MVR 12 billion (approximately USD 766 million) is required for budget financing next year.
Munawar stressed the importance of fiscal reform to stabilize reserves and improve the country’s financial standing. He warned that low credit ratings would hinder the Maldives’ ability to secure international financing, emphasizing that stronger reserves are key to maintaining favorable ratings.
“Funds raised for foreign financing must be utilized effectively to start projects. Additionally, a significant portion of next year’s budget relies on domestic financing,” Munawar explained.
The proposed 2024 budget plans to raise MVR 7 billion domestically, with MVR 19 billion allocated overall for budget financing. Of this, MVR 6.6 billion is expected to be sourced from foreign banks. Munawar praised the decision to avoid raising funds through the MMA, advising that future government expenditures should also be planned independently of MMA support.
This underscores the need for sustainable fiscal policies and reforms to ensure economic stability and improve investor confidence.
