Renowned economist Mohamed Naseem (Nafa Naseem) has claimed that the government is printing money through the Maldives Monetary Authority (MMA) because it lacks funds to cover expenses for the upcoming elections and other wasteful spending.
Nafa’s remarks follow reports that the MMA plans to inject MVR 2.5 billion into the pension fund to enable the purchase of government treasury bonds. Speaking to Ras Online, he said that while the move may appear technical, it is ultimately a political manoeuvre used by governments facing financial difficulties.
He said the Maldives is unable to secure sufficient foreign aid or loans and is struggling to repay existing debts as interest rates rise. According to Nafa, the money printing plan is designed to pay off government debts owed to private companies and to channel funds through state-owned enterprises (SOEs) to influence voters ahead of the upcoming council elections.
He said this is not a question of income; it is a sign that government finances are running dry. Nafa warned that the decision would bring long-term economic harm to the country despite offering temporary political benefits, describing it as a scam that could lead to serious consequences for the nation’s economy.
Nafa’s remarks follow reports that the MMA plans to inject MVR 2.5 billion into the pension fund to enable the purchase of government treasury bonds. Speaking to Ras Online, he said that while the move may appear technical, it is ultimately a political manoeuvre used by governments facing financial difficulties.
He said the Maldives is unable to secure sufficient foreign aid or loans and is struggling to repay existing debts as interest rates rise. According to Nafa, the money printing plan is designed to pay off government debts owed to private companies and to channel funds through state-owned enterprises (SOEs) to influence voters ahead of the upcoming council elections.
He said this is not a question of income; it is a sign that government finances are running dry. Nafa warned that the decision would bring long-term economic harm to the country despite offering temporary political benefits, describing it as a scam that could lead to serious consequences for the nation’s economy.
