Gross state reserves to reach US$310 million by June, MMA Governor warns parliament
25 Apr 2013, 7:14 PM
The head of the Maldives’ central bank, Fazeel Najeeb, has warned parliament that the country’s gross state reserves will drop to US$310 million in two months due to outstanding debts.
The statement by the governor of the Maldives Monetary Authority (MMA) follows confirmation from Finance Minister Abdulla Jihad this week that the government had suspended new development projects due to shortfalls in revenue, and was in the process of drawing up a supplementary budget.
“This is not a healthy level. The existing amount is equivalent to that needed for imports of the next two months. The best practice is to have funds for imports needed for six months,” local media reported Najeeb as telling parliament’s finance committee.
The government trying to address the problem by selling bonds to foreign countries, he said, noting that the overdrawing of the state account was “common” as a result of cash flow constraints.
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