Speaker of the parliament Mr. Mohamed Nasheed calls to listen to international indicators, including the recent Fitch downgrade.
Nasheeds' statement comes following the statement of the Ministry of Finance denying the Fitch downgrading the Maldives' Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'B+’ within two years.
In a tweet, Nasheed calls to listen to international indicators, including the recent Fitch downgrade, adding that we will not default if we can restructure our external debt, especially to Chinese commercial institutions. Nasheed also states that he remains optimistic about tourism and travel bouncing back.
Meanwhile, the parliament has already advised the government to restructure loans taken between 2012 to 2018 to maintain the debt of the state.
Fitch downgrading the credit rates to 'CCC' from 'B' comes following the decreased amount of foreign currency, a weakened economy, and an increase in debt with the ongoing covid-19 pandemic.
The statement issued by Fitch reads that even though the authorities have succeeded in securing new external financing, but foreign-currency buffers remain low, and it will be difficult for the Maldives to generate foreign-exchange inflows without normalization of tourist activity.
In response, the Finance Ministry has stated that the Maldives has never defaulted debt obligations so far, and this is a distinction that is planned to hold into the future. The statement further gives the assurance that the sovereign bonds are paid fully and on time.
Nasheeds' statement comes following the statement of the Ministry of Finance denying the Fitch downgrading the Maldives' Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'B+’ within two years.
In a tweet, Nasheed calls to listen to international indicators, including the recent Fitch downgrade, adding that we will not default if we can restructure our external debt, especially to Chinese commercial institutions. Nasheed also states that he remains optimistic about tourism and travel bouncing back.
We have to listen to international indicators, inc. the recent Fitch downgrade. But, we will not default if we can restructure our external debt, esp. to Chinese commercial institutions. With tourism and travel bouncing back, I remain optimistic. 🇲🇻
— Mohamed Nasheed (@MohamedNasheed) November 7, 2020
Meanwhile, the parliament has already advised the government to restructure loans taken between 2012 to 2018 to maintain the debt of the state.
Fitch downgrading the credit rates to 'CCC' from 'B' comes following the decreased amount of foreign currency, a weakened economy, and an increase in debt with the ongoing covid-19 pandemic.
The statement issued by Fitch reads that even though the authorities have succeeded in securing new external financing, but foreign-currency buffers remain low, and it will be difficult for the Maldives to generate foreign-exchange inflows without normalization of tourist activity.
In response, the Finance Ministry has stated that the Maldives has never defaulted debt obligations so far, and this is a distinction that is planned to hold into the future. The statement further gives the assurance that the sovereign bonds are paid fully and on time.
