The Ministry of Finance has announced the technical groundwork needed to improve the financial situation of the Maldives has been completed, with necessary measures ready for implementation.
This statement follows Moody's recent downgrade of the country's credit rating from CAA1 to CAA2, driven by concerns over foreign exchange shortages, rising commodity prices, fiscal challenges, and delays in financial reforms. In response to Moody’s report, the ministry assured that efforts to stabilize the nation’s finances are underway, with support from international financial institutions.
The ministry emphasised that the government's financial reform initiatives prioritise poverty eradication and the improvement of living standards. As part of these reforms, measures are being taken to strengthen state-owned enterprises (SOEs) to reduce their financial burden on the state.
Additionally, the ministry outlined its strategy, which includes securing financial assistance from allied nations and international organizations, while maintaining positive relationships with investors. The ministry also highlighted the critical role of the tourism sector in boosting the economy and improving the country's financial outlook. The government expressed confidence that a combination of fiscal responsibility and economic growth will ease debt repayment pressures.