Tag: finance

Island Aviation Services Rf100 million shortfall to be covered by government

The government will cover the Rf100 million annual shortfall projected for Island Aviation Services (IAS) from the privatisation of Male International Airport, according to company managing Director Ibrahim ‘Bandu’ Saleem. “We are a government company controlled by government policies.”

“It is not a loss, actually. It is a shortfall of Rf100 million annually. That means we are making profits. We are paying dividends to the Finance Ministry. But we are short of cash for our operations.” The government will provide a monthly instalment of around Rf8 million.

Saleem added that “the turbulence” was caused by delays in opening new resorts set for 2008-2010. “The resorts did not open when we brought aircraft after making contracts based on that. So we are short of cash because we have to settle the aircraft loan. That is not something we can do alone. Our operations will improve when the resorts open,” he said. Projected revenues “vanished in a puff of smoke” when Seenu (Addu) atoll Herathera resort stopped operations in mid 2009. “That shortfall is plugged by other operations.”

“We are increasing fares by Rf50 every six months,” said Saleem. “That is not a secret… but when we consider the reality, Island Aviation is the cheapest on per kilometre basis.”

Fares must increase because the prices of engine spare parts increase by 10 percent annually, and also due to inflation, Saleem explained.

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Demands for exclusive licence delay establishment of Islamic bank in the Maldives

The Maldives Monetary Authority (MMA) has confirmed that two banks have applied for the licence to establish an Islamic bank in the Maldives.

The first proposal is a public private partnership (PPP) between a multinational company and the Maldives government, and the second is for a PPP between a UAE company and the Maldives government.

The Finance ministry says that the new bank will focus on issuing loans to businesses, and the government is hoping that services will be extended to the atolls as well.

Both the government and the licence seekers are responsible for the delay in establishing an Islamic bank, according to Finance minister Ali Hashim. “Each party wishes to get an exclusive license but the government cannot give an exclusive license to any party. So the negotiations have dragged on and this has delayed the process,” the minister explained.

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Vice President meets Saudi Crown Prince and members of RCCI

As part of his official visit to Saudi Arabia, Vice President Dr Mohamed Waheed met with the Crown Prince Sultan bin Abdulaziz.

Vice President Waheed said the Maldives and Saudi Arabia had always had close bilateral ties, and they discussed ways of improving relations between the countries.

Dr Waheed briefed the Crown Prince on the upcoming Donor Conference and asked the Saudi government to participate.

The Crown Prince assured Vice President Waheed that his country would participate in the conference and would continue to assist the Maldives.

Dr Waheed then met with the Riyadh Chamber of Commerce and Industry (RCCI).

The meeting was hosted by Chairman of RCCI Dr Abdulrahman bin Ali Al-Jeraisi.

Vice President Waheed briefed the RCCI on the conference and said Maldives was specifically looking for investors in the areas of housing, infrastructure, utilities and renewable energy.

Saudi Minister of State for Finance and Treasury Ahmed As-ad was also present at the meeting and said it was important to establish a trade link between the two countries.

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