Thursday 25th Jul 2024
Dhivehi Edition
News Reports Sports Business
State Debt

Maldives' Debt Increases by MVR 47.51 Billion Since President Solih's Assumption of Office

The Maldives Journal has learned that the country's debt has increased by MVR 47.51 billion since President Solih assumed office in 2018. According to statistics published by the finance ministry, Maldives' total debt by the end of 2022 is MVR 107.77 billion, which amounts to 113% of the GDP.
The state's debt was MVR 60.26 billion at the end of 2018, and it has increased by MVR 47.51 billion between 2018 and 2022. During former President Abdulla Yameen's tenure, the government's debt increased to MVR 31 billion between 2013 and 2018. Therefore, President Solih's administration has increased the debt by MVR 16 billion more than Yameen's government.
Despite the significant increase in debt, there has been little development in the Maldives. Most of the debt is owed to India, and international organizations such as the IMF and the World Bank have warned the Maldives of being in debt distress.
It is noteworthy that President Solih promised not to increase state debt during his campaign in 2018. However, like most of his promises, he has failed to keep it. The Maldives Journal will continue to investigate and report on this developing story.
The growing debt in the Maldives is a matter of concern for citizens and stakeholders alike, and it remains to be seen how the government plans to address the issue. With a significant amount of debt owed to India and warnings from international organizations, it is crucial for the government to act decisively to prevent a potential debt crisis.