News economy / debt distress Maldives Impact 9.0/10 3 min read

Maldives Needs Urgent Action to Avoid Severe Economic Woes: World Bank

World Bank Country Director Faris Hadad-Zervos warned that Maldives must take urgent fiscal reforms to avoid high debt distress. Debt servicing is US$512 million for 2024-2025, expected to double to $1.07 billion in 2026. Reforms needed include phasing out subsidies, reforming SOEs, improving healthcare spending, and streamlining PSIP. Finance Minister Mohamed Shafeeq acknowledged the need for measures, emphasizing reform of SOEs and Aasandha healthcare mechanism.

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Maldives Republic

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Jun 11, 2024

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📋 Story Brief

World Bank Country Director Faris Hadad-Zervos warned that Maldives must take urgent fiscal reforms to avoid high debt distress. Debt servicing is US$512 million for 2024-2025, expected to double to $1.07 billion in 2026. Reforms needed include phasing out subsidies, reforming SOEs, improving healthcare spending, and streamlining PSIP. Finance Minister Mohamed Shafeeq acknowledged the need for measures, emphasizing reform of SOEs and Aasandha healthcare mechanism.

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Maldives Republic

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