The Ministry of Economic Development and Trade has issued a press release strongly refuting what it terms a “concerted effort” to spread rumours undermining the credibility of the Maldives’ banking and public finance systems. The Ministry has labelled these allegations as “false and totally baseless” attempts to derail ongoing economic and fiscal reforms.
In its statement, the Ministry assures the public that it remains committed to maintaining order within the banking system while continuing to provide essential services and proceeding with its economic reform agenda. The government emphasizes that recent reports by development partners have highlighted the positive trajectory of the nation’s economy, driven by robust fundamentals.
— Ministry of Economic Development and Trade (@MoEDmv) February 17, 2024
Despite acknowledging inherited fiscal constraints and challenges, the Ministry insists that efforts to mislead the public with baseless rumours will only erode confidence in the economy. The statement calls upon all parties to refrain from disseminating such information.
The country’s current debt stands at MVR 124 billion, exceeding 100 per cent of the country’s GDP. Economists emphasize that cost-cutting measures must be taken alongside debt management strategies to restore the nation’s financial health. In line with this, the current budget includes crucial steps for subsidy reform.
A recent delegation from the World Bank commended the government’s efforts in addressing public spending and broader public finance reforms. The delegation specifically welcomed the targeted subsidy policy, enhancements to the national health scheme (Aasandha), improved operating performance within state-owned companies, and prioritization of PSIP projects.
