The Executive Board of the International Monetary Fund (IMF) approves the disbursement of 28.9 Million under Rapid Credit Facility (RCF) to help cover balance of payments and fiscal needs, stemming from COVID-19 outbreak.
The COVID-19 pandemic having a pronounced negative impact on the Maldivian economy and is expected to cause a significant growth contraction according Tao Zhang, Deputy Managing Director.
The temporary stop of tourist arrivals, the main source of foreign earnings would weakened the fiscal and external positions, given rise to large financing gaps. Tao Zhang has noted that the funds provided will help cover parts of the financial gap, supporting fiscal rebalancing and the implementation of crisis. Additional support from the international community will be needed.
While the pandemic keeps on damaging the countries economy. IMF hopes the case flow provided would help the government to run and operate well in coming months.