The World Bank has agreed in principle to fund compensation packages for government employees who resign or are made redundant as part of the government's efforts to alleviate the effects of the economic downturn. The decision was made during President Nasheed's meeting with Ms Isabel Guerrero, Vice President for South Asia at the World Bank. The meeting was held at the World Bank Headquarters in Washington D.C.
The World Bank agreed to provide assistance for two out of the three types of redundancy packages that the government will be offering. The two types are:
1. A loan of up to Rf500,000 based on business proposals submitted by those who plan to start a small or medium business
2. A loan of up to Rf500,000 to those who plan to seek higher education
The government is determined to create a small and efficient government, expand the private sector and diversify the country's economic base.
In his radio address on 11 September, President Nasheed said “one of the most important measures to improve our economy, government administration and public finances is to balance our expenditure with our revenue. To this end, we must reduce the number of government employees.”
Under the redundancy programme, employees who decide to resign should inform their respective offices of their decision within the 3 month period commencing from 1 October 2009.
The programme will be started on 1 December 2009.
