STO to pay off debts in three years

Managing Director at the State Trading Organisation (STO) Adam Azim has said the state-owned company’s debts will be paid off within three years.

Azim told Haveeru that the STO’s US$144 million (MVR1.7 billion) debt was unprecedented, and that US$51 million had been paid off during his tenure as a result of reductions in expenditure.

Immediately upon assuming office last November President Abdulla Yameen – once head of the STO – declared the company bankrupt.

In January the company announced a campaign to cut operational costs by MVR50 million (US$3,242,542) in 2014 , before posting profits of MVR44 million (US$2.8 million) in May.

The STO is the country’s primary wholesaler, responsible for bringing in the vast majority of basic foodstuffs such as rice and flour, as well as other imported commodities such as electrical goods.

Source: Haveeru