Inaz urges consultation on pension fund bond purchase

Pension Board Chairman Dr Ahmed Inaz has said that maintaining dialogue on contentious financial decisions is in the national interest, amid ongoing discussions about the Maldives Monetary Authority’s (MMA) proposed bond transaction with the Maldives Pension Administration Office.

The central bank has proposed to purchase about MVR 2.4 billion worth of government Treasury bills currently held by the pension fund and to issue new long-term government bonds of the same value.

The proposal has drawn criticism, with Pension Board member Ahmed Saruvash Adam resigning on Wednesday in protest. He said the decision could negatively affect pension fund members and the wider economy.

Posting on X on Thursday night, Dr Inaz, who also served previously as Minister of Finance, said, “It is in the national interest not to give up on highly controversial issues until the final decision is reached and the door to negotiations is closed.”

Dr Inaz did not directly comment on the bond transaction, though several observers suggested his statement was directed at Saruvash.

Saruvash resigned after the Pension Board decided on Monday to proceed with the MMA transaction. In his resignation letter to President Dr Mohamed Muizzu, he said the arrangement carried “serious risks” to the pension scheme and could undermine public trust in the institution.

He wrote that he did not object to purchasing government bonds using funds from non-central bank sources and suggested that the investment could instead be financed through:

The Pension Board and the Ministry of Finance have not yet issued a formal statement on the status of the proposed transaction.