President Dr. Mohamed Muizzu has disclosed that the current administration inherited a substantial outstanding debt owed to Maldivian companies, amounting to USD600 million for various projects. He conveyed the information during a meeting with the residential community of Faresmaathodaa, Gaafu Dhaalu Atoll.
Speaking to the gathering, President Dr. Muizzu emphasised the plight of approximately fifty government companies awaiting payment for their contributions to essential projects such as school development and mosque construction. He also underscored the adverse impact of unpaid bills on the Maldivian economy, particularly during a period of economic downturn.
Additionally, President Dr. Muizzu revealed that at the end of the previous administration, the Maldives faced a total debt of USD8 billion, with USD600 million owed to Maldivian companies and fishermen. He noted the efforts of the current administration in reducing the debt, including the recent payment of USD17 million to fishermen, bringing the total amount disbursed to USD29 million over the past three months.
Furthermore, President Dr. Muizzu highlighted the previous government's use of funds from the Sovereign Development Fund (SDF) to repay loans, resulting in significant depletion of resources. He assured that the current administration has recommenced depositing dollars into the fund. In addition, he acknowledged the excessive money printing during the previous government's tenure and announced the cessation of such practices effective January 1.