US-based Centerview Partners has been awarded the contract to advise the Maldives on managing its growing debt, according to a report by Reuters. No further details were provided, and the Maldivian government has not yet commented on the contract.
The announcement comes as the Maldives faces mounting financial pressures. International credit rating agencies Moody’s and Fitch have recently downgraded the country’s debt ratings. Moody’s downgraded the Maldives to CAA-1, while Fitch reduced the rating to CC, reflecting concerns over a potential default.
Despite these downgrades, the government remains optimistic. Officials have stated that, even with the changes in credit ratings, they anticipate an increase in foreign exchange reserves, which they believe will help address the country’s debt challenges.
The Maldives’ debt burden continues to grow, with the country owing significant amounts to key lenders, India and China. The Maldives’ debt-to-GDP ratio currently stands at 116 percent, underscoring the scale of the financial difficulties it faces.
The announcement comes as the Maldives faces mounting financial pressures. International credit rating agencies Moody’s and Fitch have recently downgraded the country’s debt ratings. Moody’s downgraded the Maldives to CAA-1, while Fitch reduced the rating to CC, reflecting concerns over a potential default.
Despite these downgrades, the government remains optimistic. Officials have stated that, even with the changes in credit ratings, they anticipate an increase in foreign exchange reserves, which they believe will help address the country’s debt challenges.
The Maldives’ debt burden continues to grow, with the country owing significant amounts to key lenders, India and China. The Maldives’ debt-to-GDP ratio currently stands at 116 percent, underscoring the scale of the financial difficulties it faces.
