Economic Minister Mohamed Saeed has assured that the Maldives will not go bankrupt. Last night, the minister made the statement in response to widespread concerns about the nation’s deteriorating financial situation. According to financial institutions such as the World Bank, the Maldives may encounter significant debt issues unless public spending is restrained.
Acknowledging these concerns, Minister Saeed asserted that the Maldives will not succumb to debt and will continue progressing rapidly. He highlighted that under the leadership of President Dr. Mohammed Muizzu, the country’s GDP is expected to grow steadily.
“We are making arrangements to ensure that businessmen can smoothly receive USD400 million and another USD1 billion without problems. This country will not go into debt. We are hopeful that this country will progress. Under President Dr Muizzu’s leadership, our GDP will continue to grow, and the promise of housing will be fulfilled,” stated Saeed.
He emphasised that the Maldives have surpassed its designed debt situation and are working to overcome their difficulties.
Minister Saeed also mentioned that the government’s discussions with Fitch and Moody’s rating agencies and the measures being implemented under President Muizzu’s guidance will significantly improve the Maldives’ credit rating.
With Fitch rating the Maldives at Triple C Minus, Saeed acknowledged that it has become challenging for Maldivian businessmen to access development finance, a situation exacerbated by previous monetary policies.
However, Saeed reassured that unsustainable debt would no longer be an issue in the Maldives and that future borrowing would be aligned with income generation.
