The World Bank has approved a USD 12.8 million Emergency Income Support Project in the Maldives to mitigate the impact of COVID-19 on vulnerable workers and their families.
In a press statement released on June 9, the World Bank stated its Board of Executive Directors has approved a USD 12.8 million COVID-19 Emergency Income Support Project to help the Maldives mitigate the economic impact of COVID-19 on individuals whose jobs have been negatively affected by the pandemic. The project will largely finance the COVID-19 income support allowance scheme announced by the government, which aims to provide compensation for vulnerable workers who have been dismissed from their jobs, placed on no-pay leaves, or have their wages reduced below USD 323 per month amid the COVID-19 pandemic.
World Bank Country Director for the Maldives, Nepal, and Sri Lanka Idah Z. Pswarayi-Riddihough noted 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 country director said the grant will support the efforts of the government to deliver cash transfers and food benefits directly to those who need them the most. She added the grant will also strengthen the social welfare system of the country to improve its preparedness for future crises.
The latest grant approved by the World Bank is the third grant to be extended by the bank to the Maldives amid the COVID-19 pandemic. In April, the World Bank approved a fast-track aid package of USD 7.3 million as COVID-19 support to the Maldives, while another grant of USD 16.5 million was approved in May to support resilient urban development and disaster preparedness in the Maldives.