USD 100 Million Deal Secured to Boost Reserves, Finance Minister Says

The government has secured a USD 100 million financing arrangement to strengthen the country’s foreign currency reserves amid global market uncertainty triggered by the Middle East conflict, Finance Minister Moosa Zameer has said. 

Speaking at a press conference held by the ministerial committee established to mitigate the economic impact of the war in the Middle East, Zameer said the agreement was finalized yesterday with two multinational agencies.

According to the minister, the financing will help bolster the country’s reserves and assist in managing increased costs associated with fuel imports as global oil prices rise.

The committee said maintaining adequate reserves is currently the government’s top financial priority as international market volatility affects import-dependent economies such as the Maldives.

Zameer noted that crude oil prices in the global market have risen to around USD 100 per barrel, effectively doubling the price of fuel imports and placing additional pressure on the national budget. 

Despite the spike in prices, the government aims to shield the public and businesses from the immediate financial impact.

“The President’s thinking is not to burden the public and the business community,” Zameer said.

To absorb the shock, subsidies will continue to be provided while profits from the State Trading Organization (STO) will be used for cross-subsidisation to help offset rising fuel costs, according to minister Zameer. 

The minister also assured that essential imports such as oil, staple foods and medicines will continue to be guaranteed. Funds required for Maldivian students studying abroad will also be prioritised.

The committee added that the government is closely monitoring potential revenue impacts in coordination with the Maldives Monetary Authority (MMA) and the Maldives Inland Revenue Authority (MIRA), while authorities work together to maintain adequate reserve levels during the ongoing global uncertainty.