Bond of MVR 2.4 billion will not cause loss to the Pension Fund: Pension Office

According to the Pension Office, the investment in the MVR 2.4 billion bond from the Ministry of Finance will not cause any loss to the Pension Fund.

In a statement released by the office, it was noted that the proposal submitted by Finance is an investment that yields returns or profits in both Maldivian Rufiyaa and Dollars.

Furthermore, the Pension Office stated that the investment in this bond is being made using the funds received after selling bond securities that the institution had invested in the market until now.

The Pension Office board decided to carry out this transaction in late October last year. At that time, Ahmed Saruvash Adam, who was on the board, resigned following that decision.

Additionally, the chairperson of the board, Ahmed Inaz, resigned this week in connection with this transaction.

Both individuals have stated that "this is a transaction that will cause significant damage to the Maldives' economy."

In today’s statement, the Pension Office said that the investment in the government's MVR 2.4 billion bond is being made with the advice of consultants involved in creating the long-term investment strategy for the Maldives Retirement Pension Scheme.

The agency also stated that, because of this bond, a foreign currency reserve can be created within the Pension Fund through an investment without having to purchase foreign currency from the market.

The Pension Office further stated that the transaction was conducted in accordance with the Pension Act and regulations.

Looking at how this transaction is conducted, MVR 2.4 billion held in the Pension Fund as government bonds is being sold to the MMA. With the money received from that, the Pension Office is once again purchasing a MVR 2.5 billion bond from the government.

By doing it this way, the government's domestic debt will increase by another MVR 2.5 billion. This is why experts in the economic field are saying that "this is a transaction that will further worsen the financial situation of the Maldives and lead to additional economic challenges."