Maldives: 2010 Article IV Consultation: Staff Report; Staff Statement and Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Maldives
IMF Staff Country Reports, September 26, 2011
Source details
- Canonical URL
- Maldives: 2010 Article IV Consultation: Staff Report; Staff Statement and Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Maldives
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Bibliographic details
- Published: September 26, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781463904333.002
Overview and context
- Owing to severe fiscal and external imbalances, the Maldives government adopted an IMF program in 2009.
- Despite some crucial initial actions, fiscal slippages and political polarization have undermined the restoration of sustainability.
- The key policy challenge is to prevent a fiscal crisis, achieve macroeconomic sustainability, and stimulate growth.
- The authorities concur with the need to tighten monetary policy.
- The authorities have welcomed the IMF program as a useful framework to guide and reinforce their efforts to restore external balance and fiscal sustainability.
Major findings and diagnostics
- Severe fiscal and external imbalances prompted program adoption in 2009.
- Initial policy actions were considered crucial but insufficient in the face of subsequent fiscal slippages.
- Political polarization has been identified as a factor that undermined restoration of sustainability.
- Restoring external balance and fiscal sustainability remains a central priority.
Policy recommendations and authorities' stance
- Tighten monetary policy (authorities concur with this need).
- Use the IMF program as a framework to guide and reinforce efforts to:
- Prevent a fiscal crisis.
- Achieve macroeconomic sustainability.
- Stimulate growth.
Document metadata (selected)
- Pages: 78
- Volume: 2011
- Issue: 293
- Series: Country Report No. 2011/293
- DOI: https://doi.org/10.5089/9781463904333.002
- Stock No: 1MDVEA2011001
- ISBN: 9781463904333
- ISSN: 1934-7685
- Publication date on landing page: September 26, 2011
Source: Maldives: 2010 Article IV Consultation: Staff Report; Staff Statement and Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Maldives