Connect with us

News

International finance structure inadequate for SIDS: Tourism Minister

FI

Published

2 weeks ago

on

The Minister of Tourism Ibrahim Faisal has said the current international financial structure does not adequately meet the financing needs of Small Island Developing States, or SIDS.

The minister made this remarks while speaking at the high-level thematic debate on debt sustainability and socio-economic equality for all at the United Nations General Assembly (UNGA)’s Sustainability Week on Monday.

“SIDS are recognized as a special case for sustainable development, the extreme vulnerability of SIDS to climate change and external shocks raise the cost of infrastructure investments,” the minister said at the meeting.

He added that due to the lack of adequate financial structure, the Maldives faces high costs when borrowing funds from foreign sources.

“This increased cost significantly challenge our ability to service debt, it limits our capacity to invest in infrastructure and other critical developmental needs,” Minister Faisal added.

According to the minister, the high borrowing of the Maldives further impacts the long-term economic stability as well. While highlighting that developing nations require external financial support, the minister stressed that foreign fund sources should be both affordable and sustainable.

“High levels of debt are not unique to any one group of countries, however, in the face of external shocks, SIDS face a disproportionate burden on servicing debt, and maintaining debt sustainability.”

While speaking at the meeting, the Minister of Tourism highlighted the significant revenue improvement of the Maldives, which he attributed to the “highly successful tourism industry”. He further claimed that the Maldives is now a middle-income country.

“To achieve an equitable economic and social progress, we need investments in infrastructure at a massive scale. To achieve this in a sustainable manner, we need access to affordable finance, but as a middle-income country the Maldives has limited access to concessional finance,” Faisal pointed out the limits for the island nation in securing foreign financial instruments for infrastructural development.

The minister said that due to the lack of concessional financial solutions available for the Maldives, the country is left with no choice but to rely on more expensive sources of financing that in turn drive up the country’s national debt.

“This severely challenges our ability to efficiently service debt and hampers our developmental progress.”

He also highlighted the high cost associated with debt servicing as well, and said that high debt service payments restricted the government’s ability to allocate funds to essential public infrastructure and services.

Moreover, he pointed out that this diversion of resources intensified the socio-economic inequality of the Maldives.

He called out for the urgent need for reform in international financial structure to enhance affordable borrowings by SIDS.

The minister also claimed that the issue in terms of repayment is not attached to the high level of debt, but rather the lack of access to financing resources and in particular at concessional rates.

Small Island Developing States including the Maldives face various external factors that either challenge or intervene in their developmental needs, and often times, environmental other forms of crises often dampen the ability of these countries to service debt on highly expensive sources of borrowings.

The Minister of Tourism is accompanied by a high-level Maldives delegate including the staff of the Maldives Mission to the UN at the UNGA Sustainability Week.

Source(s): sun.mv

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

News

Fushidhiggaru project ongoing, will finish on time: Government

FI

Published

1 day ago

on

28/04/2024

By

The Maldives government on Sunday assured Fushidhiggaru reclamation project, a key initiative under the vision of President Dr. Mohamed Muizzu, has not stalled and would be completed on the scheduled date.

President’s Office Chief Spokesperson Heena Waleed confirmed this on Sunday at a press conference, while providing details on other government initiatives.

The state has responded about the large-scale development project amid speculation in social media and by political opponents, claiming the initiative has stalled.

In response, Heena highlighted that the sand dredging in the project is currently on pause, stressing this was not indicative of the entire project being halted.

“I would like to ask, if they gauge the ongoing status of a capacity based on whether sand dredging is ongoing or not. Although sand dredging has stopped, there would be several other associated components of the project that requires attention and execution,” Heena commented.

She further said the project requires administrative and other work, all of which, she added, were ongoing.

“In response, I would like to reply that the Fushidhiggaru project has not stalled, it is ongoing. The project would conclude as per the scheduled date announced by the President,” she said.

Under the large-scale development project, 1,153 hectares of land will be reclaimed, which is thrice the combined size of Hulhumale’ Phase I and II.

The iniatiative commenced officially on December 18, 2023 while the Maldives President assured the reclamation component will conclude within eight months from the date of commencement.

Source(s): sun.mv

Continue Reading

News

Efforts underway to submit new laws to Parliament

FI

Published

1 day ago

on

28/04/2024

By

Chief Spokesperson at the President’s Office Heena Waleed has stated that efforts are underway to complete the administrative preparations for introducing new laws and amendments to the Parliament, with the government achieving a super majority in the parliamentary elections.

Heena stated there are several crucial laws to be presented to Parliament under the government’s week-14 legislative agenda. As such, laws relating to housing, the criminal justice system, social security are to be submitted. On this stance, Heena affirmed that the laws and amendments which have been stalled in the committee phase will be given a top priority to be implemented by the end of President Dr. Mohamed Muizzu’s tenure.

Furthermore, Heena revealed that over 200 laws are to be implemented, aiming to fulfill President Dr. Muizzu’s commitment outlined in the government’s manifesto. She assured that the elected Parliament will play a significant role as their views align with that of the president.

Observing that the government attained a super majority during the parliamentary elcetions was due to the unwavering trust in President Dr. Muizzu, Heena affirmed that this advantage will not be exploited. She guaranteed that the super majority will assist the government in implementing and enforcing policies that will benefit the public as per the respective policies.

Source(s): PsmNews

Continue Reading

News

Islamic Minister discusses expanding Zakat House

FI

Published

2 days ago

on

27/04/2024

By

Minister of Islamic Affairs Dr. Mohamed Shaheem Ali Saeed has met with the Director General of Zakat House Director Dr. Majid Sulaiman Al-Azimi to discuss upgrading the Maldives Zakat House.

The minister confirmed this via X (formerly Twitter), highligting that the two discussed about expanding the services of the Zakat House, including staff and Sharia Board training, and the legal requirements of Zakat recipients.

Earlier, the minister announced the administration’s plan to introduce a financial aid system to extend aid to orphans permanently. Dr. Shaheem said orphans will receive financial support annually until adulthood.

However, the minister did not specify how much the government intended to provide as financial support each year.

The current administration established the Maldives Zakat House with the objectives of increasing public awareness on the importance of paying Zakat, and foster love among the public towards the Islamic sacred act.

Under the Zakat Fund, government provided financial support to 52 individuals earlier in March 2024.

Statistics recently provided by the Zakat House showed the fund had been disbursed mainly in four areas, which are;

For Cancer Treatment – MVR 190,822.50
Brain Surgery – MVR 180,407.19
Heart Surgery – MVR 8,482.00
Transplants – MVR 25,443.00

Additionally, another MVR 227,872.50 was disbursed for various other areas.

Source(s): sun.mv

Continue Reading

Trending