Govt cites fiscal stabilisation as main achievement at mid-term
Shareef said the administration’s approach has focused on creating fiscal space for development projects promised to the public while managing state debt.
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The government has identified fiscal stabilisation and debt management as its main achievement as the administration approaches the midpoint of its five-year term this Sunday.
Speaking at a press conference on Thursday, Chief Spokesperson at the President’s Office Mohamed Hussain Shareef said President Mohamed Muizzu considers the government’s handling of inherited debt obligations and efforts to stabilise the economy as its most significant accomplishment so far.
Responding to a question from the media, Shareef said the administration’s approach has focused on creating fiscal space for development projects promised to the public while managing state debt levels.
“Broadly speaking, our approach has been to create fiscal space for the developmental projects requested by the citizens and promised by the government, while strategically managing the state's debt to ensure it does not escalate or become an unsustainable burden on future generations,” he said.
Shareef also said the government’s diplomatic engagement on debt management had produced results through discussions with creditor countries and institutions.
“This means we have engaged in productive discussions with creditor nations and entities, securing their assistance and cooperation to resolve critical issues,” he said.
He added that the government has also worked to improve the Maldives’ economic outlook in the view of international financial institutions and donor agencies.
According to Shareef, these efforts are expected to contribute to improvements in the country’s credit rating.
He said the administration remains focused on accelerating government operations to deliver on commitments made to the public, including reforms and policy changes required to implement projects.
Earlier this week, President Muizzu stated that the government had settled USD 974 million in debt over the past 40 days.
“We are consistently servicing the debts incurred by previous administrations. To date, we have repaid USD 524 million in Sukuk, settled a USD 400 million currency swap, and today, we have also cleared a USD 50 million loan payment that fell due,” the President said on Monday.
According to figures released by the Ministry of Finance, the current administration secured MVR 29.3 billion in financing through various instruments during its first two years in office.
