President Dr Mohamed Muizzu has announced that all outstanding payments for bills submitted in accordance with regulations will be cleared within the next five weeks.
The payments cover obligations owed by both the government and state-owned enterprises.
In a statement shared on his official X account, the President reaffirmed that all pending obligations would be fully paid and settled within the stipulated timeframe. This includes all bills duly submitted under the relevant laws and regulations for completed works by Maldivian businesses, including those submitted since he assumed office on 17 November 2023.
President Dr Muizzu emphasised that this development is a significant milestone in the administration’s efforts to revitalise the economy, describing the settlement of payments as a key step towards stabilising public finances and supporting economic recovery.
According to the government, it inherited USD 583 million in unpaid bills from the previous administration for work carried out by private companies. These include contracts for the development of schools, the construction of mosques, and various other projects. In addition, approximately USD 16.8 million owed to the fishermen remained unpaid when the current administration took office. All pending payments to fishermen have now been cleared, and work is underway to settle outstanding bills owed to companies.
The government highlighted that the previous administration’s failure to pay billions to various parties in lending obligations led to a weakened economy by the end of the last presidential term, with public debt reaching USD 7.78 billion. The value of the domestic currency depreciated while foreign currency values soared due to excessive money printing, exceeding levels produced over the last 40 years. Furthermore, the former government had used millions of dollars in the Sovereign Fund that had been collected to repay loans to foreign agencies and countries.
Since taking office, President Dr. Mohamed Muizzu has resumed depositing foreign currency into the Sovereign Fund. He also stopped money printing, as well as implemented strict measures to prevent the appreciation of foreign currency. In addition, the government is regularly paying the money to fishermen and other workers.