Statistics published by Ministry of Finance has shown a clearer picture on the status of loans taken by this administration.

As per the statistics, in the past four years, this administration has taken a total of MVR 37 billion (US$ 2.4 billion) as loans in the past four years. This amount bypasses the amount of loans taken out in the five-year administration of former President Abdullah Yameen.

Under the Yameen administration, 18 loans were taken. This amounts to MVR 20 billion (US$ 1.3 billion). Solih administration has set a record, with one year left to spare.

India’s Exim bank is the biggest lender. In the past four years, MVR 19 billion (US$ 1.2 billion) was sourced from the bank. This includes MVR 6.2 billion (US$ 401.7 million) secured from the bank for the Vilimale’ bridge construction. The bank had also financed other projects, for an additional MVR 12.3 billion (US$ 796.9 million).

Additionally, the government had taken a MVR 771 million (US$ 50.0 million) loan as budget support from Cargill Financial Service International. A further MVR 227 million (US$ 14.7 million) was sourced from Islamic Development Bank for government’s waste management program.

A significantly small amount of this has gone into funding infrastructure projects. Infrastructure projects bring in more revenue, while recurrent expenses are budgetary items such as salaries and bills.

At the end of this year, the debt is expected to hit MVR 103 billion (US$ 6.7 billion).