President Ibrahim Mohammed Solih have said that the previous administration gave sovereign guarantees to paper companies and as a result the debt will be incurred on the people of the Maldives.
Speaking to the press at the president’s office he said that the main problem is the sovereign guarantees issued during the previous administration. “When that cannot be given, the state will be held responsible for it.
This is a huge loss” said the president. He said that it is not clear how much sovereign guarantee the government has given and he said that it is around 3 to 4 billion even now. “In some projects, they have taken money from people.
Some places have foundation and we do not know where the owners are. The state has given sovereign guarantees to paper companies and we have to find the chairman and the MD of these companies” said the president.
President said that he was against borrowing loans at high interest rate and paying it back within a short period. He said that he was saying that it will not be possible to repay if we take loans at 5% and then have to pay it within 5 years. President assured that the government is borrowing at low interest rate from India and with a reasonable grace period.
