Central bank defends bailing out government with GMR payout
The MMA confirmed to the Maldives Independent that it invested in a US$140 million government-guaranteed bond issued by the Maldives Airports Company Ltd on November 15, two days before the attorney general announced the payment of US$271 million in damages to the Indian infrastructure firm.
27 Nov 2016, 9:00 AM
The central bank has come under fire for using the Maldives’ international reserve to buy a US$140 million bond from the state-owned airport company to compensate Indian developer GMR.
Dr Azeema Adam, the central bank’s governor, told reporters last week that the Maldives Monetary Authority bought the bond to help settle GMR’s arbitration award.
The MMA confirmed to the Maldives Independent that it invested in a government-guaranteed bond issued by the Maldives Airports Company Ltd on November 15, two days before the attorney general announced the payment of US$271 million in damages to the Indian infrastructure firm for the cancellation of its contract to develop the country’s main airport.
“The main reason for investing in this bond was to assist the MACL, and in turn the government, in meeting its financial commitments,” the central bank’s media official said.
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