Maldives is facing “a high risk of external debt distress” due to financing the large-scale projects entirely with external loans.
The International Monetary Fund had released a report about Maldives economic growth. IMF report stated that the Maldives economic condition has deteriorated under Yameen’s Government . The International Monetary Fund (IMF) has expressed grave concern over high levels of fiscal deficits and public debt pose a significant risk, as the country is structurally spending beyond its means. IMF warned that the Maldivian economy currently faces large and growing imbalances.
Report Highlights –
Financial Mismanagement by the Yameen’s government .
External debt’s direct affect on the country’s reserve.
Public debt as a share of Gross Domestic Product (GDP) had risen almost by 11.5 percent .
Unpredictable political situation.
How the country’s finances and budgets have been run in recent years.