The government has taken a loan of MVR 800 million from the Bank of Maldives (BML) to pay the salaries of government employees this month.

A reliable source has confirmed to Adhadhu that the national bank issued a loan of MVR 800 million to the Finance Ministry. Adhadhu can also confirm that the loan was taken in the form of T-bills to pay the salaries of government employees.

Meanwhile, a USD 50 million loan due to India last month was recently rolled over for one year.

Experts warn the country's financial situation is worsening despite a growing economy.

In June, President Dr. Mohamed Muizzu announced plans to cut expenditures in order to address the financial crisis.

"We have decided to implement a number of measures to reduce the expenditure of the state. These include various measures to reduce the recurrent expenditure of the government. This means reducing the number of political posts and reducing costs or not holding ceremonies for different occasions," he said.

Experts say one of the main reasons for the deteriorating financial situation is the increase in government expenditure. These include spending USD 37 million dollars to purchase military drones and repaying a USD 50 million loan with interest to India earlier this year despite no obligation to repay it at the time.