Minister of Finance Moosa Zameer has assured that there is no imminent threat of bankruptcy, citing the strong measures taken under President Dr. Mohamed Muizzu’s leadership.
In response to questions from Parliament, Minister Zameer explained that the government inherited a debt of USD 8 billion, with nearly two-thirds of it accumulated by the previous administration. The current government has focused on reducing expenditure, facilitating debt repayment, and increasing income generation.
The Finance Minister highlighted that President Muizzu has sought to extend the debt repayment period with the support of friendly countries. Additionally, the government has implemented austerity measures, including salary cuts for political employees and parliamentarians, and reduced spending by government agencies. These efforts have helped the Maldives avoid bankruptcy, with recent reports no longer predicting such a scenario.
The government has also introduced banking services as a new sector to boost the economy. Through these measures, the government aims to stabilize the financial situation and ensure long-term economic stability.