Muizzu Addresses SOEs’ Financial Challenges

President Dr. Mohamed Muizzu has acknowledged efforts to address the loans and debts of State-Owned Enterprises (SOEs) during the “Raees ge Javaab” series, which facilitates direct public interaction with the President on diverse issues.

In response to a query from Naushad Abdul Razzaq from Addu City concerning the repayment plans for SOE debts, Muizzu discussed how the previous government had politicised these companies, resulting in many operating at a loss. He emphasised the challenging economic conditions inherited by the current administration and the significant financial strain faced by many SOEs.

Muizzu revealed that numerous SOEs have faced bankruptcy, with only a few being profitable, excluding some major corporations. Therefore, he underscored the government’s commitment to strengthening these companies as a key priority for improving the economy.

Additionally, Muizzu disclosed ongoing efforts in collaboration with relevant banks to address the issue of loan and debt repayment. He also mentioned that SOEs are devising strategies to permanently settle their debts, aiming to alleviate the burden on the public.

To ensure the profitability of SOEs, the government has decided on several measures, including ceasing direct expenditure on their operations. Enhancing corporate governance is also highlighted in the government’s Week 14 Roadmap as a crucial step towards achieving this objective.