[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109686-en":3,"doc-seo-109686-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109686,1374391975076,"Riley","https://ap-avatar.wpscdn.com/avatar/14000253ca4ec9f6853?x-image-process=image/resize,m_fixed,w_180,h_180&k=1783305029341752051",8,"Research & Report","Maldives - Joint World Bank-IMF Debt Sustainability Analysis - April 2020","Maldives faces a high risk of debt distress, with overall risk rated high. Under the baseline scenario, most indicators breach their thresholds, though medium-term trends turn downward. COVID-19 triggered measures to reduce non-priority recurrent and capital spending and to reprioritize capital expenditures, placing debt on a decreasing path. Risks from sovereign bond rollovers are mitigated through the Sovereign Development Fund and a voluntary extension. Staff assess public debt as sustainable, contingent on consistent policy implementation. Economic impacts and policy responses evolve rapidly, with risks tilted downward.","Public Disclosure Authorized Public Disclosure Authorized  \nINTERNATIONAL DEVELOPMENT ASSOCIATION  \nINTERNATIONAL MONETARY FUND  \nMALDIVES  \nJoint World Bank-IMF Debt Sustainability Analysis  \nApril 2020  \nPrepared Jointly by the staffs ofthe International Development Association (IDA)  \nand the International Monetary Fund (IMF) Approved by Marcello Estevão (IDA) and Ranil Salgado (IMF)  \n\n| Maldives: Joint Bank-Fund Debt Sustainability Analysis |  |\n| --- | --- |\n| Risk of external debt distress: | High |\n| Overall risk of debt distress: | High |\n| Granularity in the risk rating: | Sustainable |\n| Application of judgement: | No |\n\nThe Maldives continues to be at high risk of debt distress. As in the 2019 Article IV DSA published on June 2019 , all indicators except the debt-to-exports ratio breach their respective thresholds under the baseline scenario but they display medium-term downward trends. In response to the shock to the economy caused by the COVID-19 outbreak, the authorities have taken steps to reduce non-priority recurrent and capital spending as well as rebalance the distribution of available resources. Given the changes in domestic and global conditions, the authorities have committed to reprioritize and cut capital expenditures which are projected to decline in the next few years, helping to put debt on a decreasing path. Rollover risks from the repayment of two outstanding international sovereign bonds are mitigated both by the Sovereign Development Fund (SDF) and by the preemptive voluntary extension of a privately placed US$100 million bond due in 2023 (now due in 2026) . Thus, staff judge public debt in Maldives tobe sustainable. This assessment of debt sustainability is predicatedon the implementation of the authorities’ stated policies which are substantial and require a high level of commitment. The macroeconomic framework reflects currently available information. Updates ofthe economic impact and policy response to the COVID-19 crisis are rapidly evolving and risks are heavily tilted to the downside.  \nBACKGROUND AND DEVELOPMENTS ON DEBT  \n1. Total public and publicly guaranteed (PPG) debt in Maldives stood at around US$4.4 billion in 2019, approximately 77 percent of GDP. About 50 percent of public debt is domestic and denominated in local currency. Domestic debt is held largely by other financial corporations, includingthe national pension (42 percent), commercial banks (36 percent), and the central bank (21 percent).1 The increase in public sector debt by about US$0.6 billion with respect to 2018 levels is broadly in line with the projected increase during the previous 2019 Article IV consultation. This increase in external PPG debt was mostly associated with finalizing existing public housing projects carried out by the Housing Development Corporation (HDC), a state-owned enterprise (SOE) . The remainder of the increase in external debt was associated with the airport expansion project and infrastructure projects related to electricity and sanitation. These projects are needed to fill the infrastructure needs of the Maldives as the infrastructure gap remains large. For example, the expansion of the airport will increase the capacity of the Maldives to receive new tourists and meet the demand of airlines wishing to fly to Male but unable to receive a landing slot because of the airport’s limited capacity. This excess demand was pre-pandemic, butit is expected to resume after conditions normalize. The airport expansion should contribute positively to GDP growth over the medium and long term.  \n\n| Total Public and Publically Guaranteed Debt\u003Cbr>(in percent of GDP) |  |\n| --- | --- |\n| 90\u003Cbr>80\u003Cbr>70\u003Cbr>60\u003Cbr>50\u003Cbr>40\u003Cbr>30\u003Cbr>20\u003Cbr>10\u003Cbr>0 |  |\n\n\n| Outstanding Domestic Debt by Creditor, June 2019 |  |  |\n| --- | --- | --- |\n| (in percent of total)\u003Cbr> Other Financial Corporations\u003Cbr> Commercial Banks\u003Cbr> Central Bank\u003Cbr> Public Non-Financial Corporations\u003Cbr> Private Sector | 1% 0. 3% |  |\n|  |  | 42% |\n|","cbCaiezR6Ol4DBML","https://ap.wps.com/l/cbCaiezR6Ol4DBML","pdf",497338,3,1,17,"English","en",105,"# Risk assessment and macroeconomic context\n## COVID-19 impact and policy response\n# Public debt composition and developments\n## Total public and publicly guaranteed (PPG) debt\n## External PPG debt and creditor structure\n# Coverage of the public sector\n## Institutional subsectors and guarantees\n# Key assumptions and mitigation measures","[{\"question\":\"What is the overall risk of debt distress for Maldives in this analysis?\",\"answer\":\"The overall risk of debt distress is rated High, and the risk of external debt distress is also High.\"},{\"question\":\"How did COVID-19 affect the debt trajectory and policy approach?\",\"answer\":\"Authorities reduced non-priority recurrent and capital spending and reprioritized capital expenditures. Projected declines in capital spending help put debt on a decreasing path.\"},{\"question\":\"What measures mitigate rollover risks from international sovereign bonds?\",\"answer\":\"Rollover risks are mitigated by the Sovereign Development Fund and a preemptive voluntary extension of a privately placed US$100 million bond.\"}]","Maldives - Joint World Bank-IMF Debt Sustainability Analysis - April 2020 | PDF",1784481891,43,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":29},"maldives-joint-world-bank-imf-debt-sustainability-analysis-april-2020","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,51],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":20},"https://docshare.wps.com/document/research-report/",{"item":52,"name":13,"@type":44,"position":53},"https://docshare.wps.com/document/maldives-joint-world-bank-imf-debt-sustainability-analysis-april-2020/109686/",4,{"url":52,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":42,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"What is the overall risk of debt distress for Maldives in this analysis?","Question",{"text":76,"@type":77},"The overall risk of debt distress is rated High, and the risk of external debt distress is also High.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"How did COVID-19 affect the debt trajectory and policy approach?",{"text":81,"@type":77},"Authorities reduced non-priority recurrent and capital spending and reprioritized capital expenditures. Projected declines in capital spending help put debt on a decreasing path.",{"name":83,"@type":74,"acceptedAnswer":84},"What measures mitigate rollover risks from international sovereign bonds?",{"text":85,"@type":77},"Rollover risks are mitigated by the Sovereign Development Fund and a preemptive voluntary extension of a privately placed US$100 million bond.","https://schema.org",{"og:url":52,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":52},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":53,"doc_module":4,"doc_module_name":47,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":107,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},5,"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":107,"slug":139},19,"General","general"]