MDP Calls for Urgent Action Amid Credit Downgrade and Democratic Concerns
Former Finance Minister Ibrahim Ameer has called on the government to take immediate action to restore investor confidence after Moody’s downgraded the country’s credit rating from ‘CAA1’ to ‘CAA2’.
The downgrade was linked to growing risks of default on external debt obligations, with the Maldives facing a debt service of approximately USD 600 million in 2025 and over USD 1 billion in 2026.
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މި ސަރުކާރުގެ ނުކުޅެދުންތެރިކަމުން ބޮއްސުންލާފައިވާ ސަރުކާރުގެ މާލީ ހާލަތު ރަގަޅުކުރަން، ކްރެޑިބަލް ރަނގަޅު ސިޔާސަތެއް ސަރުކާރަށް އަދިވެސް ތަންފީޒު ނުކުރެވުމަކީ ކަންބޮޑުވާންޖެހޭ ކަމެއް. ސަރުކާރުގެ އަމަލުތައް އަދިވެސް ހުރީ ގޯހުން ގޯހަށް. ސިޔާސީ މުވައްޒަފުން ގިނަކުރުމެއް ނުހުއްޓޭ.… https://t.co/tIbBRqrcSN— Ibrahim Ameer (@iameeru) September 15, 2024
In a post on X, Ameer criticised the government’s handling of public finances, calling the current state “alarming” and accusing the administration of failing to implement effective policies. “They have failed to stop high political appointments… corruption within government companies has increased exponentially,” he said. Ameer urged immediate measures to restore financial discipline and strengthen institutions, warning that failure to act would lead to further economic instability.
The Maldives Monetary Authority (MMA) responded to the downgrade by reaffirming the government’s ability to meet its external debt obligations, including an October bond repayment. The central bank highlighted improvements in international reserves, which rose to USD 444 million at the end of August, and outlined upcoming revisions to monetary regulations aimed at bolstering the foreign exchange market.
Shahid Stresses Urgency of Safeguarding Democratic Values and Progress
Former Foreign Minister Abdulla Shahid emphasised the need to protect democratic values and progress in a post on X.
As we celebrate International #DemocracyDay, in the Maldives, we are seeing the worrying signs of the roll-back of democratic values and principles.
Democratic values and progress are connected.
We must be vigilant to not lose the gains we have made as a country in…— Abdulla Shahid (@abdulla_shahid) September 15, 2024
He highlighted the importance of maintaining free speech, human rights, and the rule of law, stating that democratic values and progress are “intricately linked”. Shahid stressed that vigilance is required to ensure the Maldives does not lose the democratic gains made in recent years.
Fayyaz Warns of Democratic Backsliding at Critical Crossroads
Similarly, Maldivian Democratic Party (MDP) Chairperson Fayyaz Ismail warned of the risk of democratic backsliding, describing the country as being at a “crossroads.”
He called for a renewed commitment to the democratic principles that underpin Maldivian society, warning that freedoms hard-won over decades could be lost if not protected.
On International Day of Democracy we must reaffirm our commitment to democratic values. The journey here is the result of a decades long struggle, but the job is never done. Once again, we are at the crossroads of democratic backsliding. A harsh reminder that these freedoms we…— Fayyaz Ismail (@faya_i) September 15, 2024
In contrast, the ruling People’s National Congress (PNC) expressed optimism in their statement, celebrating the successes of President Dr. Mohamed Muizzu’s administration in advancing democratic reforms. The party noted that his policies would pave the way for a new chapter in the country’s democratic history.
These comments come amid ongoing political debates, with opposition figures expressing concern over the state of governance and democracy, while the government remains focused on addressing both economic and institutional challenges.
Amidst these economic concerns, the Maldives also marked International Day of Democracy, with opposition and government figures expressing contrasting views on the state of democracy in the country.
