Records from the Ministry of Finance have revealed that the government has secured a €50 million loan (equivalent to MVR 844 million) from a private entity to provide budgetary support.
However, the identity of the lending party remains undisclosed in the financial records. Despite inquiries from the press, the ministry has not yet commented on this matter.
The 2023 state budget, totalling MVR 42.6 billion, carries a deficit of MVR 14.1 billion. Consequently, the deficit financing is being managed through methods such as T-bills, loans, and other financial channels.
Throughout this year, the government has already procured loans amounting to MVR 1.3 billion. This includes a USD 34 million (equivalent to MVR 250 million) loan facilitated by the International Development Association.
While the budget anticipates MVR 2.4 billion in grants, only a mere eight percent (MVR 214 million) of this projection has been received so far. The outstanding 91% of the projected grants are yet to materialise.
Additionally, the government has expended a total of MVR 1.4 billion on loan servicing. For the year 2023, there is a mandatory repayment obligation of MVR 2.1 billion.
As a result, the current state debt stands at MVR 108 billion, reflecting a substantial increase of MVR 46 billion from the debt documented in the 2019 balance sheets. This debt amounts to 113% of the current GDP.