The World Bank has approved an income support project worth 12.8 million dollars for workers in the Maldives who have been influenced by the COVID-19 pandemic, local media reported on Thursday.
The World Bank’s Board of Executive Directors in a news release said the COVID-19 Emergency Income Support Project will strengthen the Maldives government’s income support allowance scheme for workers who have lost their jobs.
They said that it would also support on no-pay leave, or those whose wages were reduced to below 323 dollars per month.
“The drastic fall in tourism revenues and the constraints necessitated by the COVID-19 containment efforts have dealt a severe blow to low-income households who have lost their jobs or their source of income.
“The funds include a 6.4-million-dollar grant and a 6.4 million-dollar credit line from the International Development Association (IDA),’’ World Bank Country Director for the Maldives, Nepal, and Sri Lanka Idah Z. Pswarayi-Riddihough said.
The Ministry of Economic Development would be implementing the project with assistance from the National Social Protection Authority and the Maldives Pension Administration Office.
According to the World Bank’s South Asia Economic Focus, the Maldives may see a GDP contraction of 8.5 to 13 per cent in 2020 due to shocks from the COVID-19 pandemic.
Edited By: Abiodun Oluleye and Isaac Aregbesola (NAN)