Thursday
5th Dec 2024
Dhivehi Edition
Minister Zameer
President Muizzu’s Strategic Leadership Steering Maldives Away from Debt Crisis: Finance Minister Zameer
Finance Minister Moosa Zameer, photo: Parliament
Finance Minister Moose Zameer has announced that the Maldives has successfully steered clear of a potential bankruptcy scenario, thanks to the strategic financial measures implemented under President Dr. Mohamed Muizzu’s leadership. The minister made the statement during today’s parliamentary session in response to a member’s query.
Minister Zameer acknowledged that the Maldives faced an acute financial crisis due to mounting debt repayment obligations coupled with the need to fund essential development projects. He referenced an International Monetary Fund (IMF) report that warned of a possible bankruptcy if the country attempted to pay its debts within the stipulated time while maintaining public services.
However, Minister Zameer credited President Muizzu’s proactive measures, including reducing government expenditure and deferring foreign debt payments, for changing the trajectory. "By God's will, the President will take the country out of that scenario, improve revenue streams, and rationalize expenses. Additionally, extending the terms of some debts and negotiating bilaterally with friendly nations have alleviated the immediate financial pressure," said the minister.
When the Muizzu administration assumed office, the country’s debt stood at MVR 124 billion, comprising obligations inherited from both the previous administration and earlier governments. Zameer highlighted that now the government has stabilized the situation.
"Today, the conversation about the Maldives going bankrupt or insolvent has ceased," Zameer said, adding that the shift has been recognized by institutions like the IMF and credit rating agencies.
The government remains committed to improving revenue streams and rationalizing public expenditure while collaborating with international partners to ensure long-term fiscal stability.