Minister of Finance Ibrahim Ameer has stated the government has provided USD 61 million to businesses financially affected by the COVID-19 pandemic. He made the remarks at a ceremony held to commission water and sewerage network projects in 23 islands across the Maldives.
Speaking at the ceremony, Minister Ameer noted the government was forced to make changes to the plans made in 2019 following the COVID-19 pandemic and close the country's borders in 2020, resulting in the economy shrinking by 34%. The minister said the economic recession led to a reduction in state income and the government took loans to keep the economy afloat and provide financial security to citizens. As such, he said the government provided USD 27 million in income support allowance to 22,946 individuals and provided discounts for water bills of 110,966 households and discounts for electricity bills of 276,203 households.
He also said the government provided USD 23 million in loans to small and medium-sized enterprises (SMEs) through the SME Development Finance Corporation (SDFC) and provided USD 38 million to large businesses through the Bank of Maldives (BML). The finance minister said the government had significantly reduced the expenditure in 2020 and took loans to provide financial security to citizens and overcome the recession in order for the economy to return to normal as soon as possible.