Maldives seeks support to build buffers as energy costs rise, minister says

Budget deficit could widen to 9% from 7.1% target on higher energy subsidies, Zareer says Maldives faces $300-$400 million annual debt repayments for next few years, Zareer says World Bank to provide $250 million over 2-3 years, minister says By Uditha Jayasinghe COLOMBO, Oct 13 (Reuters) — The Maldives is seeking support from the World Bank and other partners to shore up its reserves and press ahead with economic reforms as higher fuel costs and weaker tourism revenues strain the economy, Finance Minister Hassan Zareer told Reuters. The archipelago of 1,192 islands scattered across 500 miles (800 km) of the Indian Ocean imports all of its fuel, forcing the government to triple energy subsidies this year as prices surged following the escalation of conflict in the Middle East, Finance Minister Hassan Zareer said. Higher subsidy costs have also raised the nation's budget deficit to a possible 9%, from the targeted 7.1%, he added. "The government is committed to bringing reforms to our expenditures, and we're working on fiscal consolidation and working on bringing down or reducing our deficits," Zareer said in an online interview ahead of the annual meetings of the IMF and World Bank