Muzz pledges to restructure debt

PPM-PNC presidential candidate, Male Mayor Dr Mohamed Muizz has said on Saturday that the government has plunged the country into a huge “pit” by increasing the public debt and that he will restructure the debt.

Muizz made the remarks this while campaigning for the September 9 presidential election in Boduthiladhummathi, speaking at a rally in HDh. Kulhudhuffushi on Saturday evening.

"[This government] has now plunged this country into a pit. The debt stands at more than MVR 100 billion," Muizz, who is running for the presidency with the support of former President Abdulla Yameen, said.

"Our government will restructure the debt. Good, consistent plans will be made. Short-term and long-term debt restructuring plans will be made and we will hopefully ensure that the loans are repaid easily”.

With the government’s latest budget support loan of Euro 50 million (MVR 842.8 million) from a foreign private creditor, this year alone borrowings amount to USD 75.3 million (MVR 1.2 billion).

While Maldives’ debt is rising day by day, the government is opposed to debt restructuring. Finance minister Ibrahim Ameer has previously said that doing so would destroy the entire economy.

However, Muizz believes that debt restructuring is essential.

“We will not allow it [to pay the debt] to be a burden on the people,” he said.

Muizz said his government would formulate a special law on state spending policy.

"As a result, the government's expenditure will be managed responsibly and no wasteful expenditure will be made. The introduction of such a special law will be a high priority in our view," he said.

Muizz added:

"We have to work to ensure that these companies are regulated, that they generate revenue and are maintained, that they are self-sustained. We will hopefully introduce laws and regulations that ensure that with the help of parliament," he said.

"Then some companies will end the practice of giving 100 jobs, 1,000 jobs, night and day."