There are no plans to seek debt relief, says finance minister

Finance Minister Ibrahim Ameer said he had no intention of seeking debt relief.

Minister Ameer briefed parliament on the state of the country’s debt during Wednesday’s parliamentary session in response to a question from Kulhudhuffushi North MP Yasir Abdul Latheef.

Yasir asked if the government is trying to find ways to ease debt repayment by negotiating with countries that have provided loans to the Maldives.

In his response, the Finance Minister said that although the Maldives borrows from other countries, the country has never faced a default situation. Minister Ameer’s response suggests that such a situation is unlikely to occur in the future.

“Therefore, we do not anticipate a situation where we will default in the future. For this reason, we have no intention of negotiating with lenders to find ways to ease debt repayment terms,” Ameer said.

Although Minister Ameer expressed confidence that the Maldives would not default on its loans, international financial institutions have noted that the Maldives’ debt ratio is very high. Financial institutions are also calling for action to address the debt problem facing the Maldives.

The country’s total debt now exceeds MVR 100 billion. The country’s external debt stood at MVR 31.5 billion at the end of last year.

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