RTTNews - Thursday, the International Monetary Fund or IMF reached in a staff-level agreement with Maldives to address economic crisis.
Under the 30-month stand-by arrangement, the IMF would provide financial aid worth $60 million to Maldives.
Maldives is facing a difficult economic and fiscal situation, IMF mission leader to Maldives, Jeremy Carter, said.
The global economic crisis has hit the Maldives' key tourism and tourism-related industries hard. As a result, the economy is in recession and fiscal revenue has fallen sharply, Carter said.
A key objective of the IMF program will be to protect the poor and vulnerable sectors of the population from the current economic hardship and the consequences of the required policy measures, such as reducing public spending and monetary tightening.
The government's strong commitment to macroeconomic stability and to restoring sustainable and equitable growth merits the support of the international community. Upon the approval of IMF management, the program will be submitted to the Executive Board for approval, Carter said.
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