Minister of Finance Ibrahim Ameer has stated that there is no need for the government to discuss restructuring the debt of the Maldives.
Speaking at the Parliament of the Maldives, Minister Ameer noted that the government is working to reduce expenditure but there is currently no need to find ways to restructure the debt. He highlighted that the Maldives is consistent in servicing its debt and that the country has yet to encounter a situation in which it had to default. He, therefore, said that there is currently no need to hold discussions to restructure the debt.
Furthermore, Minister Ameer highlighted that the government reduced state expenditure in response to the rise in prices in the global market due to the Russia-Ukraine conflict. He detailed that USD22 million has been included in the budget for fuel subsidies but that the amount spent has reached USD84 million. He also said that the government has prioritised repaying the debt and paying salaries, adding there is no foreseeable hindrance to the efforts.
Additionally, Minister Ameer said that the government has not made any decision to halt the projects being conducted under the Public Sector Investment Programme (PSIP). He said that many of the projects are in the tendering stage and will be awarded to contractors soon. He added that most of the projects are related to the development of the health sector.
In conclusion, Minister Ameer said that the government aims to begin all the projects allocated in the PSIP this year, although efforts are slower than initial expectations due to restrictions in the cash flow but are continuing in a staggered process. He also said that a disbursement plan will be formulated to fund the projects from this year's and next year’s budget, emphasising that the budget will grow depending on the global oil prices.