Recent statistics reveal that since assuming office in November 2023, the administration of President Dr. Mohamed Muizzu has not withdrawn any funds from the Maldives Monetary Authority (MMA). Former President Abdulla Yameen Abdul Gayyoom, speaking at a People's National Front (PNF) rally on June 24, accused the government of borrowing from the MMA, claiming that such actions amount to the equivalent of printing money.
Yameen asserted that MMA data indicated a withdrawal of USD 843,956 as an advance to the government, highlighting concerns over financial practices. "Advance to Government" refers to loans extended by the central bank to the government, utilizing the public account's overdraft.
Contrary to these claims, the monthly Statement of Financial Position from the MMA indicates no withdrawals as advance to the government since November 2023. Specifically, the government withdrew USD 110.4 million in November 2023, but subsequent reports from December 2023 to May 2024 show no further withdrawals.
During the period from January 2023 to November 2023, MMA disbursed USD 1.2 billion to the government. However, following the change in administration, no funds have been accessed under the "Advance to Government" category since December 2023, as confirmed by the MMA's financial reports.
Moreover, the MMA's investment activities have shown a shift. As of December last year, the central bank had invested USD 941.3 million in Treasury bills, with USD 3.9 million in T-bills. By May this year, T-bill investments dropped to USD 3.8 million, and Treasury bonds declined to USD 934.8 million from USD 941.3 million. These adjustments indicate a strategic reduction in government reliance on T-bills and Treasury bonds to manage debt and deficits.
T-bills are discounted government securities issued to finance budget shortfalls, promising repayment at face value upon maturity, thereby benefiting investors.