The Maldives is no longer bankrupt, Finance Minister Moosa Zameer announced during a parliamentary session today. The declaration marks a significant milestone for the island nation, which has faced severe economic challenges in recent years.
Responding to a query in Parliament, Minister Zameer revealed that the government inherited a staggering debt of MVR 124 billion upon assuming office. He noted that 24% of the country’s revenue had been allocated to servicing this debt, further straining public finances.
The International Monetary Fund (IMF) had previously warned that the Maldives faced a dire risk of bankruptcy if it attempted to meet all its debt obligations while maintaining essential public services.
Despite these challenges, Zameer stated that the government successfully navigated the crisis by improving revenue streams, renegotiating debt terms, and securing support from friendly nations. These measures have restored a semblance of stability to the nation’s economy.
"Now, I don't think anyone is talking about bankruptcy," Zameer said, referencing recent assessments from the IMF and international rating agencies. While these bodies continue to urge fiscal prudence, discussions of the Maldives’ insolvency have significantly subsided, the minister added.
Responding to a query in Parliament, Minister Zameer revealed that the government inherited a staggering debt of MVR 124 billion upon assuming office. He noted that 24% of the country’s revenue had been allocated to servicing this debt, further straining public finances.
The International Monetary Fund (IMF) had previously warned that the Maldives faced a dire risk of bankruptcy if it attempted to meet all its debt obligations while maintaining essential public services.
Despite these challenges, Zameer stated that the government successfully navigated the crisis by improving revenue streams, renegotiating debt terms, and securing support from friendly nations. These measures have restored a semblance of stability to the nation’s economy.
"Now, I don't think anyone is talking about bankruptcy," Zameer said, referencing recent assessments from the IMF and international rating agencies. While these bodies continue to urge fiscal prudence, discussions of the Maldives’ insolvency have significantly subsided, the minister added.
