Majlis approves cash flow motion to withdraw MVR 4.4 bn from MMA
26 އެޕްރީލު 2020 | އާދީއްތަ 11:5060 members unanimously voted to pass the bill with seven members voting against
Finance Minister Ibrahim Ameer
The People’s Majlis has approved the Maldivian government’s appeal to seek cash flow in order to manage the country’s dropping finances amid the Covid-19 pandemic.
The parliament passed to approve MVR 4.4 billion as requested by the Minister of Finance, Ibrahim Ameer. Ameer requested the overdraft amount to be changed in a way that does not include a finance cost for the period of one year.
The motion was submitted by MP for north-Hithadhoo constituency Mohamed Aslam. It seeks to implement a cessation on the limits set under Articles 36 (d) as well as 32 (a) (d) and (e) of the Fiscal Responsibility Act which will in turn allow the government to access long-term withdrawals from the central bank, Maldives Monetary Authority (MMA).
60 members unanimously voted to pass the bill with seven members voting against. The members who debated against the bill are members representing the opposition Progressive Party of the Maldives (PPM) and People’s National Congress (PNC), who criticized the government’s economic policies.
Article 32 (a) of the Fiscal Responsibility Act notes that the state may only borrow from the central bank on the condition that the repayment is made within 91 days and that withdrawals must be limited to no more than one percent of the average state revenue, based on the revenue collected within the past three years.
In light of this, an overdraft amount currently available through the central bank, MMA is MVR 219 million.
According to the documents attached to the letter addressed to parliament by Ameer, the government requires MVR 4.4 billion.
Under Article 36 of the act, the People’s Majlis has the authority to approve this request.
