During a parliamentary session on Tuesday, Finance Minister Moosa Zameer credited President Dr. Mohamed Muizzu’s leadership for mitigating bankruptcy concerns in the Maldives. Zameer highlighted the Administration’s strategic financial policies as a response to inherited fiscal challenges, including a national debt of MVR 124 billion, over half of which was accrued by the previous government.
With 24% of national revenue directed toward debt repayment, the Government has restructured its budget to prioritize essential public services while managing the debt burden. Drawing on International Monetary Fund (IMF) reports, Zameer emphasized that a rapid repayment of debts without maintaining public services could have led the country into financial collapse.
Instead, the Administration has pursued stabilization through a multifaceted approach. Key measures include securing financial agreements with allied nations, optimizing expenditures, and extending debt repayment timelines to improve cash flow and bolster revenue. These actions align with the fiscal strategies outlined in President Muizzu’s manifesto, which the minister described as instrumental in averting a debt trap.
Zameer also noted that global financial institutions, including the IMF and credit rating agencies, had previously advocated for aggressive cost-cutting to address risks. However, the Government’s proactive measures have alleviated insolvency fears and established a foundation for sustainable financial stability.
The finance minister attributed the country’s improving financial outlook to President Muizzu’s decisive and strategic leadership, which he credited with guiding the Maldives away from a potential financial crisis and ensuring progress toward long-term economic resilience.
