Administration Has Halted Debt Monetisation: President Muizzu

President Mohamed Muizzu announced at the Huravee Day event that his administration has halted debt monetisation. He said the state stopped debt monetisation as soon as it started running the government. The administration does not want to extend permission for debt monetisation or overdraw from public accounts, as previously informed by Finance Minister Mohamed Shafeeq to Parliament. Under the Fiscal Responsibility Act of 2013, the MMA limits government debt, but Parliament exempted application from April 2020 to end of 2023. Minister Shafeeq requested removal of exemption effective 1 January 2024 as the natural disaster exemption no longer applies. The overdraft will be securitised into long-term bonds. The Solih administration oversaw debt monetisation of over MVR 4.4 billion starting 2020.

President Mohamed Muizzu announced at the Huravee Day event that his administration has halted debt monetisation. He said the state stopped debt monetisation as soon as it started running the government. The administration does not want to extend permission for debt monetisation or overdraw from public accounts, as previously informed by Finance Minister Mohamed Shafeeq to Parliament. Under the Fiscal Responsibility Act of 2013, the MMA limits government debt, but Parliament exempted application from April 2020 to end of 2023. Minister Shafeeq requested removal of exemption effective 1 January 2024 as the natural disaster exemption no longer applies. The overdraft will be securitised into long-term bonds. The Solih administration oversaw debt monetisation of over MVR 4.4 billion starting 2020.

President Mohamed Muizzu announced at the Huravee Day event that his administration has halted debt monetisation. He said the state stopped debt monetisation as soon as it started running the government. The administration does not want to extend permission for debt monetisation or overdraw from public accounts, as previously informed by Finance Minister Mohamed Shafeeq to Parliament. Under the Fiscal Responsibility Act of 2013, the MMA limits government debt, but Parliament exempted application from April 2020 to end of 2023. Minister Shafeeq requested removal of exemption effective 1 January 2024 as the natural disaster exemption no longer applies. The overdraft will be securitised into long-term bonds. The Solih administration oversaw debt monetisation of over MVR 4.4 billion starting 2020.

This story involves 1 source and may affect public understanding of debt monetisation / fiscal policy.