True independence through economic prosperity: President

The government's vision and hopes for Maldives’ development and future can only be realized if the country gets out of the financial abyss and the aim is to overcome the debt trap and achieve true independence, President Mohammed Muizzu said Monday.

Delivering his first presidential address after assuming office in November, President Muizzu said the country was in heavy debt when he took office.

The President said the government debt as a percentage of GDP stood at 115.9% at the end of last year due to debt taken to finance the deficit in recent years.

"In the past five years, about MVR 8 billion has been printed in the name of meeting government expenditure. This is a huge amount compared to the total amount printed in the previous 40 years," he said.

As a result, Maldivian Rufiyaa has faced serious difficulties in maintaining its value, commodity prices have risen and inflation has increased, he said.

One of the first things he did after taking over the government was to end the irresponsible monetization, he said.

Pointing out that printing of currency has been stopped since December 31, he said the government has started the process of restoring the suspended clauses in the Liability for Public Expenditure Act and bringing the economy back on track.

"The aim of all these efforts is to restore prosperity to the people and the entire state. To escape from the debt trap. Although we are politically independent, true independence cannot be achieved without affordability and economic prosperity," he said.