Sovereign Development Funds declines to MVR 98.7 million

27 Nov 2022 | 00:03
Minister Ameer

The Maldives' Sovereign Development Funds (SDF) have decreased, even more, reducing the amount of money that is available for use.

According to the Ministry of Finance and Treasury statistics MVR 98.7 million is now available in the SDF. 

The Ministry statistics revealed that the sum has decreased noticeably after reaching a billion in October as the money was invested in various items which reduced the sovereign wealth fund amount. 

Previously, MVR 5.1 billion was available for immediate use at the beginning of this year. However, the majority of these were invested in various programs. 

The government has stated that it wanted to increase the amount in the sovereign funds to USD 600 million by 2026. 

Although the government intends to boost these funds by investing various programs. Maldives Monetary Authority (MMA) has said that if the investments made using SDF have not matured by 2026, there will be significant difficulties in repaying the obligations.

The Sovereign Wealth Fund was established by Former President Abdulla Yameen Abdul Gayoom. The purpose of these funds was to be used in situations where it becomes challenging to repay the debt incurred from loads taken for significant infrastructure projects or when overcoming different economic crises.

SDF funds are kept with MMA and managed completely separately from those in the authority's reserve.