Minister of Economic Development and Trade Mohamed Saeed has assured that the Maldives is on a path to economic improvement, emphasising that the current administration will avoid undertaking burdensome debts.
At a gathering held at the main office of the People’s National Congress (PNC), Minister Saeed addressed concerns about the nation’s economic health, reflecting on past challenges and outlining the government’s approach to future financial strategies. He acknowledged that the Maldives’ credit rating had declined from B-plus to CCC-minus, attributing this downgrade primarily to the substantial debts incurred under previous administrations.
Minister Saeed questioned the current administration's role in the nation’s low credit rating, attributing the economic struggles faced by businesses to the previous government’s irresponsible financial practices. He said the current administration’s focus is on improving the nation’s economic standing rather than further exacerbating the situation through additional debt.
He explained that while the government is currently not seeking new loans for economic development, it is concentrating on managing existing debts and improving the country’s financial health. He further noted the administration is diligently working to establish repayment arrangements for the significant foreign loans of USD 400 million and USD 1 billion obtained from international institutions.
Furthermore, the minister expressed optimism that through strategic financial reforms and responsible economic management, the nation will overcome its current challenges and achieve a stable and prosperous economic future. The focus is on enhancing economic growth and ensuring that the country does not fall deeper into debt during President Dr. Muizzu’s tenure, he added.
He also pointed out that the previous administration’s economic policies led to a significant increase in state debt, with the Maldives Monetary Authority (MMA) reporting the printing of USD 531.7 million adding the current administration has halted this practice and is making strategic decisions essential for economic reform and stability.
Additionally, Minister Saeed noted that the economic deterioration under the previous administration had hindered the Maldives’ ability to obtain financial assistance from international developmental banks. However, the current government is working to rebuild trust with these institutions by transparently explaining the economic situation and demonstrating the measures being taken to address it.