Maldives: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Maldives

IMF Staff Country Reports, April 23, 2020

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Maldives: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Maldives

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Bibliographic details

• Published: April 23, 2020
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781513542096.002

Key findings on economic impact

• The pandemic is inflicting significant damage, especially on tourism activity.
• The pandemic is expected to result in substantial weakening of the Maldives’ gross domestic product growth, balance of payments and the fiscal position.
• The government of the Maldives acted quickly to put in place containment measures and is seeking support from the international community for its crisis response plan.

Authorities' response and measures

• The authorities have responded quickly to the coronavirus disease 2019 outbreak, including specific travel restrictions and subsequently more comprehensive travel measures.
• The authorities put together a set of measures to alleviate the social and economic fallout from the pandemic.
• The temporary fiscal accommodation is appropriate.
• The authorities will reprioritize and cut capital expenditures, redirecting funds as needed to combat the pandemic and provide temporary and well-targeted support to the most vulnerable households and businesses, while maintaining high standards of transparency and governance.
• The authorities remain committed to fiscal and debt sustainability over the medium term.
• The authorities intend to achieve a balanced fiscal adjustment based on:
  • the reduction of capital spending to historical averages,
  • recurrent expenditure discipline, and
  • revenue mobilization.

Policy recommendations and priorities

• Reprioritize and cut capital expenditures to free resources for pandemic response.
• Provide temporary and well-targeted support to the most vulnerable households and businesses.
• Maintain high standards of transparency and governance in the delivery of support.
• Pursue revenue mobilization and recurrent expenditure discipline to preserve fiscal and debt sustainability over the medium term.

Subject areas and keywords (as listed)

• Subject: Capital spending, COVID-19, Debt sustainability, Debt sustainability analysis, Economic sectors, Expenditure, External debt, Health, Public debt, Tourism
• Keywords: Capital spending, containment measure, COVID-19, CR, debt, debt management strategy, Debt sustainability, Debt sustainability analysis, discussion of the Maldives, financial support, financing, financing gap, fund assistance, Global, ISCR, Tourism

Content in this bundle

• Executive Summary — Maldives
  • Executive Summary — Maldives (Markdown version)
  • Executive Summary — Maldives (PDF)