Maldives No Longer at Risk of Sovereign Default: Finance Minister

Finance Minister Moosa Zameer told Parliament that the Maldives is no longer at risk of sovereign default due to the Muizzu administration's efforts to reduce expenditure and extend debt repayment periods. The IMF had previously warned that the Maldives could not meet debt obligations while providing for its people, but Zameer said the President improved revenue and rationalized spending, and that talk of default has stopped. The state's debt was MVR 124.8 billion at end-2023, expected to rise to MVR 146.6 billion by end-2024 (117% of GDP), and MVR 150 billion by end-2025. Zameer also explained that publication of financial statements was halted last June due to prior-year expenditures included in the 2024 budget.

Finance Minister Moosa Zameer told Parliament that the Maldives is no longer at risk of sovereign default due to the Muizzu administration's efforts to reduce expenditure and extend debt repayment periods. The IMF had previously warned that the Maldives could not meet debt obligations while providing for its people, but Zameer said the President improved revenue and rationalized spending, and that talk of default has stopped. The state's debt was MVR 124.8 billion at end-2023, expected to rise to MVR 146.6 billion by end-2024 (117% of GDP), and MVR 150 billion by end-2025. Zameer also explained that publication of financial statements was halted last June due to prior-year expenditures included in the 2024 budget.

Finance Minister Moosa Zameer told Parliament that the Maldives is no longer at risk of sovereign default due to the Muizzu administration's efforts to reduce expenditure and extend debt repayment periods. The IMF had previously warned that the Maldives could not meet debt obligations while providing for its people, but Zameer said the President improved revenue and rationalized spending, and that talk of default has stopped. The state's debt was MVR 124.8 billion at end-2023, expected to rise to MVR 146.6 billion by end-2024 (117% of GDP), and MVR 150 billion by end-2025. Zameer also explained that publication of financial statements was halted last June due to prior-year expenditures included in the 2024 budget.

This story involves 1 source and may affect public understanding of sovereign default / economic stability.