The Finance Ministry has requested the parliament to extend the overdraw from the Public Bank Account (BPA) for the 3rd time.
In a letter sent to the parliament signed by Finance Minister Ibrahim Ameeru, the Ministry said that the country's economy has stabilized after the country opened its borders after the COVID pandemic was controlled and its tourism sector revived.
But, the letter said that there are still challenges to the economy as the world continues to rebuild amid the COVID pandemic.
The letter said that it would be hard to manage cash flow and implement the budget if the government is to repay the overdraw from the BPA in the short term.
The Ministry cited articles (A), (D), and (E) of the Public Finance Act which governs the extension of the overdraw under certain circumstances, and requested the parliament to approve the extension for one year starting from April 26, 2022.
The government had already withdrawn MVR 4.4 billion from the BPA and the latest request for an extension comes amid international concern about Maldives printing more money.
Earlier this month, the International Monetary Fund IMF issued a statement saying that the Maldives should not print more money if it wants to maintain its current exchange rate.
IMF advised the country, adding the government should curtail spendings and raise funds from bonds if needed.
