Maldives is engaging in discussions with foreign countries regarding loan deferment, says Minister of Finance, Ibrahim Ameer.

He said this in response to a question posed by Hulhudhoo constituency parliamentarian Ilyas Labeeb during Wednesday’s sitting. The MP asked whether discussions were underway to amend the loan structure, highlighting that the biggest loan Maldivian took was during 2013, from China.

In response, the minister noted that the country is facing numerous challenges due to the ongoing Covid-19 pandemic and that Maldives has participated in the G20 debt suspension initiative as well.

Ameer noted that discussions are also underway with the countries that have offered loans in support of the government's Covid-19 response, at a time the country’s Gross Domestic Product (GDP) and overall productivity plunged greatly. Ameer added that discussions are also underway with creditors.

Stressing that the previous government had requested larger loans to undertake projects that could have been carried out for smaller prices, the minister stated that this has led the total debt stock to increase significantly.

This comes at a time the government of China has deferred the loan repayment period for the government of Maldives.

Further, the Minister of Foreign Affairs, Abdulla Shahid has also called on the G20 to extend their debt service suspension initiative until the end of 2021.