SUBSCRIBE TO OUR FREE NEWSLETTER
PUBLISHED |

$92 million Maldives package to weather GFC

$92 million Maldives package to weather GFC article image
The International Monetary Fund has announced a bailout package worth $92.5 million for the Maldives, designed to assist the island nation's recovery from the global economic downturn. The Maldives has suffered from a fall in tourism, lower fish exports and a drop in capital inflows. The package "aims to rebuild international reserves to prudent levels," said IMF deputy managing director Takatoshi Kato. The Maldives will undergo a 36-month program to reduce fiscal deficit and maintain existing social programs. It will also reduce the size of its government, cut public sector salaries, introduce corporate taxes and privatise loss-making enterprises while protecting the poor through targeted subsidies. The 2004 Indian Ocean tsunami, which took a number of the nation's low-lying resorts, triggered an economic collapse that has seen its debt rise from 55.2 percent in 2004 to 91.6 percent of gross domestic product.

Tags

Leave A Comment

Spinning icon Saving your comment, please wait...
Spinning icon Saving your comment, please wait...
SUBSCRIBE TO OUR FREE NEWSLETTER