The government is exploring ways to address the mounting debts incurred by government-owned companies, President Dr Mohamed Muizzu announced during a recent episode of the “President’s Answer” programme.
Responding to a question about plans to repay these debts, the President acknowledged that many government companies were running at a loss.
“When this government took over, the economy was in dire straits” President Muizzu stated. “Many companies were on the verge of bankruptcy. Only a handful of large companies remain profitable. Strengthening these companies is a key area where the government will focus to bolster the economy.”
The President indicated that the government is in discussions with relevant banks to find solutions to the debt problem. Moreover, plans are underway for companies to clear their debts in a definitive manner.
To enhance the profitability of government-owned companies, the administration has resolved to halt financial support for their operations. Additionally, the “Week 14” programme includes measures to reinforce corporate governance within these companies.
