Maldives’ fiscal position is weak, and its external reserves are critically low. The country has a long history of fiscal and external imbalances. The debt ratio is above 80 percent of GDP, and deficits above 10 percent. This loose fiscal stance has contributed to current account deficits of over 25 percent of GDP and sustained pressure on reserves, which has been compounded recently by large debt repayments. Gross reserves could drop to $250 million (1½ months of imports) by February, with the freely usable portion falling to just $50 million.