President Ibrahim Mohamed Solih has said that the State has enough money to purchase monthly supplies without comprising the State of going bankrupt.
Deputy Speaker of the Parliament Eva Abdulla has submitted a proposal to the Parliament to investigate the presence of funds in the reserve. When she proposed it, Speaker of the Parliament Mohamed Nasheed expressed concern over the high state debt and warned that the threat of state reserves could be very low in July.
The President met with the press this evening after nearly nine months and spoke about the serious concerns raised by the public regarding the economy.
“Even if it is June, July, August, food and oil can be purchased monthly without any difficulties,” President Ibrahim Mohamed Solih.
The President said the global economy is facing a difficult situation. But the rumors that the country could run out of reserves and go bankrupt, are far from the truth and misleading. “It is causing concern and anxiety among the people. They should not be talked about for political purposes,” he said.
‘Debt didn’t grow overnight’:
- According to the President, Maldives’ debt had not reached MVR 100 billion in a single day, rising to 113% of GDP.
- By the end of 2012, the total debt of the Maldives stood at MVR 17 billion.
- Total debt rose to MVR 62 billion between 2013 and 2018; an increase of 169% or MVR 39 billion.
- The current administration has so far taken a debt of MVR 37.4 billion; an increase of 60%.
“The debt increase rate has been reduced,” said the President.
According to the President, the highest amount will have to be repaid in 2026. He said that USD 600 million was required to be paid from the Sovereign Development Fund this year.
“The Sovereign Development Fund currently has Rs 4 billion,” he said, without specifying whether it was in rupees or dollars.
The President also noted that there was no truth in the claim that the reserves would run out and the country would not be able to pay its debts. Noting that Maldives has about $800 million in reserves.