Minister of Finance Moosa Zameer has stated that the most vulnerable populations must be protected from the risks posed by a debt crisis. The Minister made the remarks while speaking at the Global Economic Forum 2024 in New Delhi, India.
In his address, the Finance Minister highlighted several challenges currently facing the global economy. He shed light on the Russia-Ukraine war and the developments in the Middle East which have brought about a significant shift in global trade and economy.
Minister Zameer expanded on these challenges and noted that significant hikes in the prices of oil and food had also impacted the Maldives. Additionally, the COVID-19 pandemic had forced countries to take out substantial loans, he noted, adding that these countries are now grappling with the challenges of paying back said loans sustainably.
The Minister emphasised that financial sustainability must be maintained, while also navigating political and strategic realities when undertaking efforts to overcome these challenges. Therefore, countries like Maldives which are actively repaying debt must keep vulnerable populations in mind, he stressed.
Further highlighting the importance of choosing a productive approach to debt repayment and increasing revenue, the Minister commented on assistance extended by international agencies, noting that such support is essential to ensure sustainability and improve the country's medium-term financial outlook.
The Minister also spoke about the risks the Maldives face due to climate change. Despite these challenges, he noted that the Maldives continue to work relentlessly to overcome the situation. He revealed that the country is working to convert 33 percent of its energy consumption into renewable energy, and stressed the importance of working together to achieve such goals. He also emphasized the importance of sharing expertise and knowledge on such matters.