Fiscal Reforms Enable Maldives to Repay Significant Inherited Loans, Says Finance Minister

The Maldivian government has successfully repaid significant loans inherited from previous administrations, according to Minister of Finance and State Enterprises Moosa Zameer. The Minister attributed this achievement to aggressive financial and administrative reforms implemented by the current government to stabilize the nation's economy. Speaking at a press conference held at the President’s Office, Minister Zameer revealed that the administration faced serious concerns regarding potential debt defaults when President Dr. Mohamed Muizzu first took office. Through a strategic focus on rationalizing expenditure and improving debt sustainability, the government has managed to bring national debt to a sustainable level despite a challenging global economic climate. As part of the new fiscal strategy, Minister Zameer emphasized that future borrowing will be strictly regulated. The government will only undertake new loans if they are accompanied by clear repayment plans and robust financial arrangements to avoid repeating past instabilities. Beyond debt management, the Minister addressed the current cost of living and essential supplies. He confirmed that the state is maintaining a stable supply of fuel and basic commodities, utilizing subsidies to shield the public from volatile global price fluctuations. He assured the public that there have been no disruptions in securing fuel supplies to date. These remarks were delivered during a briefing by the Special Cabinet Committee, a body specifically formed to monitor and respond to escalating geopolitical tensions in the Middle East and the Gulf region, which could potentially impact global trade and energy prices.