Gov’t’s Biggest Achievement Is Improving Finances, Spokesperson Says

Government Chief Spokesperson Mohamed Hussain Shareef said the government’s greatest achievement so far has been improving the country’s financial situation as the administration approaches the midpoint of its five-year term this Sunday.

Responding to a journalist during the weekly “Presser with the Spox” held today, Mohamed said President Mohamed Muizzu also considers the government’s handling of inherited debt and efforts to improve state finances its biggest accomplishment.

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“Overall, seeking space for the development work requested by our citizens and promised by the government, while arranging that work strategically to ensure the Maldives’ debt does not rise further and does not become a burden on the future,” the spokesperson said.

He added that the government’s foreign relations efforts to manage debt obligations also represented a significant achievement.

“This means that through discussions with the countries or parties to whom we owe debt, and with their assistance and cooperation, certain issues were resolved,” Mohamed said.

“Furthermore, significant work was done to improve the image of the Maldives and to keep the perception of financial institutions and aid donors towards us at a good level for the future.”

The spokesperson noted that the government last week repaid a USD 50 million loan that formed part of a USD 150 million borrowing arrangement taken from India during the administration of former President Ibrahim Mohamed Solih. He said the payment was made without taking additional foreign loans.

Another USD 50 million had already been repaid previously, and Shareef noted the government intends to settle the remaining USD 50 million due in September without seeking a rollover arrangement.

Responding to another question, Shareef said the government had taken major steps to repay loans obtained from various foreign countries during the previous administration.

He also said the government believes these efforts will contribute to improving the Maldives’ credit rating.

President Muizzu stated earlier this week that the government had repaid USD 974 million in debt over the past 40 days.

Statistics published by the Ministry of Finance show that the government borrowed MVR 29.3 billion from various parties during its first two years in office.

The spokesperson added that no development projects would be halted due to the country’s debt obligations and said the government’s current priority remains strengthening the Maldives’ financial position and broader economy.