The Cabinet has today finalised mechanisms to issue sovereign guarantees, in accordance with Public Finance Act, to infrastructure development projects funded by private sector.
The paper presented to today’s Cabinet meeting by the Ministry of Finance and Treasury on the matter proposed to issue Guarantees to a limit of Rf125 million annually to support private sector to raise funds as part of the government’s policy to increase private sector participation in national development. However, this Guarantee will not be issued to individuals operating in the private sector.
The Cabinet agreed that, if a project involves an item included in the budget or an expenditure approved by the People’s Majlis, the President would decide on issuing a Guarantee after the Minister of Finance and Treasury presents the project with recommendations.
However, the Cabinet decided that, when a project involves expenditure not included in the budget or approved by the People’s Majlis, the President would send the project for Majlis’ consent on issuing a sovereign guarantee.
At today’s meeting, the Cabinet also decided to establish National Food and Nutrition Council.
National Food and Nutrition Council will oversee food and nutrition policy making and implementation of programmes to ensure inclusion of all stakeholders in these processes to realize national targets for food security and nutrition.
The Council, to be headed by the Vice President, will include policy makers from the relevant authorities.
In addition, the Cabinet approved the Maldives’ participation in the International Organisation for Migration (IOM), today.
Ministry of Foreign Affairs is to complete necessary arrangements for the Maldives’ participation in the Organisation.
