Minister of Finance Ibrahim Ameer has stated the economic recession following the COVID-19 pandemic would have been protracted if the government had not taken loans. He made the remarks while speaking at the ceremony to sign agreements to begin water and sewerage projects in 23 islands.
The government has faced criticism for taking loans to overcome the economic recession following the COVID-19 pandemic.
Speaking at the ceremony, Minister Ameer said the government had taken the loans with a long-term plan to provide financial security to citizens and overcome the recession in order for the economy to return to normal as soon as possible. The minister said taking loans during economic recessions is a successful strategy used in other countries and that the Maldives would have had to face a more drawn-out recession if the government had refused to take loans.
He said the Maldives had taken loans in accordance with a counter-cyclical fiscal policy in order to repay the debt when the economy returns to normal.
Furthermore, Minister Ameer noted International Monetary Fund (IMF) has projected a strong economic outlook for the Maldives in 2022. He also said the country is one of the top five countries in terms of the fastest Gross Domestic Product (GDP) growth.