World Bank Country Director Faris Hadad-Zervos warned that the Maldives faces high debt distress risk and needs urgent fiscal reforms, citing the World Bank's Maldives Development Update released on 8 May 2024. Minister of Finance Mohamed Shafeeq said the government is ready to act, prioritising state-owned enterprise reform, Aasandha spending reform and ending blanket subsidies in favour of a targeted approach.
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the United Nations (UN) affiliated financial institution’s ‘Scaling Back and Rebuilding Buffers, the latest Maldives Development Update’ which was released on 8 May 2024
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For decades [the] #Maldives has been spending beyond its means. Sharp spending rise & subsidies have widened deficit, leading to a vulnerable fiscal situation & unsustainable debt
We have no choice but to take measures due to the fragility of our financial situation and debt management. We are ready to do that
The administration needs to stabilise [state-owned] enterprises. This cannot be postponed. We will start very soon
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the nation’s annual debt servicing needs are likely to be US$512 million for 2024 and 2025
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and a will likely almost double, to US$1.07 billion, in 2026.
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