The government of the Maldives signed a credit agreement of US$13.7 million with the World Bank (WB) last week in order to accelerate economic growth by supporting key areas of the government’s macroeconomic programme.
A press release from the WB indicated that the financing includes approximately US$1.7 million from the International Development Association’s (IDA) Pilot Crisis Response programme. The WB stated that its programme for the Maldives supports the government’s credible set of reform measures to achieve upper-middle income status through economic diversification, more equitable access to services and opportunities and improved service delivery to sustain growth.
It said the focus of support will be public financial management, public enterprise reform and social protection. WB Country Director for Sri Lanka and the Maldives Naoko Ishii said the WB is pleased to support the government’s efforts to put in place important policy and institutional structures that will help regain and sustain inclusive economic growth.
The WB stated that the proposed programme is consistent with the Maldives Country Assistance Strategy (CAS) for 2008 to 2012 which aims to support the government’s efforts to better manage the economy and public finances. The WB programme is part of a broader financing effort to the support the Maldivian government with the International Monetary Fund (IMF) and the Asian Development Bank (ADB) also providing support to the government’s programme to help regain macroeconomic stability.
The IMF has approved approximately US$92.5 million over three years while the ADB has approved a US$35 million budget support operation with half expected to be disbursed in 2010 and the other half planned for mid-2011.