Maldives: Developing a Legal, Policy and Operational Framework for the Sovereign Development Fund

By Sandeep Saxena, Trevor A Lessard, Marie-Helene Le Manchec, John Gardner, Martin Marcone, Alissa Ashcroft

August 8, 2023

Preview Citation

Format: Chicago

Sandeep Saxena, Trevor A Lessard, Marie-Helene Le Manchec, John Gardner, Martin Marcone, and Alissa Ashcroft. Maldives: Developing a Legal, Policy and Operational Framework for the Sovereign Development Fund, (USA: International Monetary Fund, 2023) accessed January 21, 2025

Summary

This High-Level Summary technical assistance report focuses on developing a legal, policy and operational framework for the sovereign development fund (SDF) in Maldives. Until the fiscal situation in Maldives improves, the SDF could continue to usefully serve the twin objectives of external debt repayment and credit enhancement. It has helped boost investor confidence, enabling Maldives continued access to international financial markets, and come in handy for liquidity management during the pandemic. Decisions are required on the size of the SDF, the treatment of any excess inflows, and the application of the Fund’s balance upon its liquidation. While the fund size of a sinking fund would correspond to the underlying debt, a credit enhancement objective would consider a combination of factors, such as market conditions, credit standing, liabilities covered by the fund, and the medium-term debt strategy. A strong governance framework would enhance the legitimacy, performance, and accountability of the IMF.

Subject: International organization, Monetary policy

Keywords: Debt Management, Legal Frameworks, Public Financial Management, Sovereign Wealth Funds

Publication Details

Pages:

4
Volume:

---
DOI:

---
Issue:

---
Series:

High Level Summary Technical Assistance Report No. 2023/009
Stock No:

HLSEA2023009
ISBN:

9798400251917
ISSN:

2959-4103

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

High-Level Summary Technical Assistance Reports