At the recent parliament sitting, the Speaker of the Parliament, Mr. Mohamed Nasheed has said that the parliament advises the state to restructure the state debt.
Speaking at the parliament, Mohamed Nasheed said that restructuring the state debt is possible and the first thing to proceed with it would be discussing and informing the loan provider for not being able to repay the loan on the agreed date.
Mohamed Nasheed also states that upon informing about the delay in loan repayment, will leave the loan provider with two options. An option could be repayment in goods, which is not expected, as per Nasheed. Nasheed has said that the possibility of the Chinese commercial bank coming for goods in return for the loan is unexpected.
Meanwhile, Nasheed has previously stated that if loans from China, cannot be paid back at the agreed date, China could come back for the islands of the Maldives.
Speaking about the state debt restructuring, Nasheed has said adjusting the repayment amount, minimizing the interest rate, and increasing the grace period can be considered, in restructuring state debts.
The state has announced that due to Covid-19, the estimated revenue for the state budget, is no longer expected. Hence repayment for the loans have to be started from next year Parliament Committee has been working on a solution to figure out loan repayments next year.
Speaking at the parliament, Mohamed Nasheed said that restructuring the state debt is possible and the first thing to proceed with it would be discussing and informing the loan provider for not being able to repay the loan on the agreed date.
Mohamed Nasheed also states that upon informing about the delay in loan repayment, will leave the loan provider with two options. An option could be repayment in goods, which is not expected, as per Nasheed. Nasheed has said that the possibility of the Chinese commercial bank coming for goods in return for the loan is unexpected.
Meanwhile, Nasheed has previously stated that if loans from China, cannot be paid back at the agreed date, China could come back for the islands of the Maldives.
Speaking about the state debt restructuring, Nasheed has said adjusting the repayment amount, minimizing the interest rate, and increasing the grace period can be considered, in restructuring state debts.
The state has announced that due to Covid-19, the estimated revenue for the state budget, is no longer expected. Hence repayment for the loans have to be started from next year Parliament Committee has been working on a solution to figure out loan repayments next year.
