US$28.9m Disbursement to Maldives by IMF

Thursday 23rd of April 2020

US$28.9m Disbursement to Maldives by IMF

IMF Executive Board has approved a US$28.9 million disbursement to the Republic of Maldives to address the COVID-19 pandemic. This is the 30th request for emergency financial assistance to help its member countries address the challenges posed by COVID-19.

Containment measures inside and outside the country are leading to a substantial reduction in economic activity, with sectors such as tourism, transport, and construction hit particularly hard. As a result, the short-term economic outlook has deteriorated significantly, with large uncertainties surrounding the duration of the pandemic and the timing of the recovery of tourism.

IMF states that the authorities in Maldives have acted fast to mitigate the impact of the pandemic by increasing health spending and putting in place measures to contain the outbreak. They have also responded with a combination of fiscal, monetary, and prudential measures that seek to minimize its economic impact, as well as providing temporary support for vulnerable households and business most affected by the crisis. The IMF financing will help ease some of these measures and garner further donor support.